Kansas - Where Republicans actually enacted their radical agenda.

[BigLouie]

Here is a great article about how the Republican party in Kansas got to enact their radical ideas of tax cuts for business and the rich. The result is not pretty.

Kansas has a problem. In April and May, the state planned to collect $651 million from personal income tax. But instead, it received only $369 million. Nothing like a $300 million short fall.

Many small firms are structured as S-corporations, and federal law requires an S-corporation’s owner-managers to pay themselves at least a “reasonable” salary. But by converting to a limited liability company, or L.L.C., owners can set their salaries to zero and take all of their income from the company as profits, thus avoiding any Kansas tax. Guess what all the S-corps in Kansas are now doing.

In time Kansas will be a lot like Detroit. No money and no way to pay their bills.

http://theweek.com/article/index/268...radical-agenda

http://www.nytimes.com/2014/06/29/up...abt=0002&abg=0

[Jewish Lawyer]

Of course, they could do what Texas does, and not have a state income tax!!! Then the LLC versus S corp thing doesn't matter, but I did like the Detroit reference just the same.

Alternately, they could charge people to look at their fabulous mountains...

[CuteOldGuy]

I think Kansas has a budget surplus, and everything is funded. We would do a lot better without a state income tax. That being said, I'm still not voting for either Brownback or Davis.

[JD Barleycorn]

Originally Posted by BigLouie

Here is a great article about how the Republican party in Kansas got to enact their radical ideas of tax cuts for business and the rich. The result is not pretty.

Kansas has a problem. In April and May, the state planned to collect $651 million from personal income tax. But instead, it received only $369 million. Nothing like a $300 million short fall.

Many small firms are structured as S-corporations, and federal law requires an S-corporation’s owner-managers to pay themselves at least a “reasonable” salary. But by converting to a limited liability company, or L.L.C., owners can set their salaries to zero and take all of their income from the company as profits, thus avoiding any Kansas tax. Guess what all the S-corps in Kansas are now doing.

In time Kansas will be a lot like Detroit. No money and no way to pay their bills.

http://theweek.com/article/index/268...radical-agenda

http://www.nytimes.com/2014/06/29/up...abt=0002&abg=0

You would get it wrong. Brownback was supposed to pass the FairTax into law but he didn't. So, republicans didn't pass their entire agenda. I look around Kansas and see new building going up everywhere. Highway construction has not stopped or slowed. Jobs and businesses are still coming over from Missouri and you think that is a problem? You must be in Denver and not smoking tobacco.

[Guest032516]

Originally Posted by BigLouie

In time Kansas will be a lot like Detroit. No money and no way to pay their bills.

Did you COMPLETELY miss the irony of your comparison?

You compared Kansas to an even worse place where Democrats enacted their radical agenda.

Heh.

[BigLouie]

Be sure to let me know who wins the governor's election

[i'va biggen]

McCain, and Palin are coming to Kansas to help campaign. If that doesn't sink him nothing will.

[JD Barleycorn]

It will be nice to see Sarah again. Maybe we can have a drunken brawl and someone can punch out EVA....probably Willow.

[i'va biggen]

Originally Posted by JD Barleycorn

It will be nice to see Sarah again. Maybe we can have a drunken brawl and someone can punch out EVA....probably Willow.

And they will have a video of you sucking Todd's dick. Thanks for finally admitting there was a brawl Judy.

[KCJoe]

Chris Christy was in town yesterday to help Brownback raise funds from some well-heeled Kansans. Guess the Koch brothers weren't kicking in enough. Easy to say that income tax is not needed, but those states without it get their funds elsewhere. Texas has some of the highest sales tax and property taxes in the nation. Florida screws the tourists. Brownback made permanent a temporary sales tax to try and make up for the income tax cuts. He also took the proceeds of a highway bond sale to help shore up the general fund. Used to be the contributions to the teachers retirement fund weren't part of the education budget. He has since moved it over so it looks like more is going to education, when in fact, it's just an accounting gimmick.

[JD Barleycorn]

Originally Posted by i'va biggen

And they will have a video of you sucking Todd's dick. Thanks for finally admitting there was a brawl Judy.

You're stupid again. I never denied a brawl. Want to hear that again? I NEVER DENIED A BRAWL. I questioned who started it, how it ended, and the motivation (and presence) of the original story teller.

When are you going to get your shit together?

What made you think of Todd's dick? Something you've been thinking about? Me, I'd like a shot at Bristol. We know she gets around.

[Sugardaddy41]

Originally Posted by BigLouie

Many small firms are structured as S-corporations, and federal law requires an S-corporation’s owner-managers to pay themselves at least a “reasonable” salary. But by converting to a limited liability company, or L.L.C., owners can set their salaries to zero and take all of their income from the company as profits, thus avoiding any Kansas tax. Guess what all the S-corps in Kansas are now doing.

I would be really interested in where you think a "S" corp pays tax and an LLC does not. Seeing has how the earnings of an "S" corp are passed to the shareholder and are taxed at the shareholder's tax rate.

An LLC is not an taxable entity in the eyes of the IRS. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. And an LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation.

The main advantage associated with the S Corporation is that the income passes through to the shareholer , therefore avoiding a perceived double taxation of a C-Corporation.

http://www.residual-rewards.com/kans...rporation.html

http://www.irs.gov/Businesses/Small-...ty-Company-LLC

So the only tax that might be effected here is social security not income. And just so you know. Detroit has been under democratic rule for 52 years and it was not republican agendas that bankrupted Detroit.

My Guess is that the S corp is staying the way they are, keeping salaries low to reduce the amount of SS tax paid by the owner-manager and the corporation increasing the the profits the shareholders get which are taxed at their regular rate.

[i'va biggen]

Originally Posted by JD Barleycorn

You're stupid again. I never denied a brawl. Want to hear that again? I NEVER DENIED A BRAWL. I questioned who started it, how it ended, and the motivation (and presence) of the original story teller.

When are you going to get your shit together?

What made you think of Todd's dick? Something you've been thinking about? Me, I'd like a shot at Bristol. We know she gets around.

Odd think I asked you three times, and you talked all around it but would never answer. Old history anyway.

[JD Barleycorn]

Originally Posted by i'va biggen

Odd think I asked you three times, and you talked all around it but would never answer. Old history anyway.

Can't you take a hint, I was ignoring you because you were contributing nothing to the conversation.

[lustylad]

Originally Posted by Sugardaddy41

I would be really interested in where you think a "S" corp pays tax and an LLC does not. Seeing has how the earnings of an "S" corp are passed to the shareholder and are taxed at the shareholder's tax rate.

An LLC is not an taxable entity in the eyes of the IRS. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. And an LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation.

The main advantage associated with the S Corporation is that the income passes through to the shareholder , therefore avoiding a perceived double taxation of a C-Corporation.

http://www.residual-rewards.com/kans...rporation.html

http://www.irs.gov/Businesses/Small-...ty-Company-LLC

So the only tax that might be effected here is social security not income. And just so you know. Detroit has been under democratic rule for 52 years and it was not republican agendas that bankrupted Detroit.

My Guess is that the S corp is staying the way they are, keeping salaries low to reduce the amount of SS tax paid by the owner-manager and the corporation increasing the the profits the shareholders get which are taxed at their regular rate.

Thanks for the clarification. Note to others - don't hire BigLouie to prepare your taxes or advise you on incorporation options.

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