Submitted By David Norlin
Last week’s online Kansas City Star led with this headline: Unfit by any standards, legislators run amok.”
The story began, “The Kansas Legislature has made many jaw-dropping moves these last few months, but a Senate vote this week leaves us especially agog. By a 25-14 vote, senators agreed to eliminate property taxes for many of the state’s private gyms and health clubs.”
Forget your workout at the local gym. Let’s exercise our minds here. The trail to truth is full of crooks and snags, but together we can get there.
This exhibition of favoritism is worthy of outrage on its own merits. But with full knowledge of the Governor’s dramatic giveaway of income taxes, the consequent impoverishment of the state, and the ensuing blow of the property tax hammer on all of us, this bill exempting a private enterprise, thus enriching them at our expense, is especially egregious.
As for the Senate, why would, and how could, they? As is evident elsewhere in state politics, $$ are involved–45 thousand of them, to be specific. Even more specifically, the $45,000 donated by Rodney Steven, part owner of Genesis Health Clubs, to Senate Republicans. His $$ influence was also evidenced in his and Genesis’ home base, Wichita. He sought tax-free financing from the city for an expansion of his clubs in 2004, only to have the city back out of the deal. Steven filed a lawsuit over the perceived broken promise, but the city won.
That didn’t stop his dogged determination to buy politicians, local or state. Steven and Genesis each gave maximum donations to Wichita Republican Sen. Michael O’Donnell, bolstering his campaign with $4,000 as he successfully unseated incumbent Republican Sen. Jean Schodorf (who has since left the Republican party) and beat Democrat Timothy Snow in the general election. Not content to stay local, he also sent maximum donations to Senate President Susan Wagle and Senate Majority Leader Terry Bruce.
His thirst for special privilege was evidently not quenched by his liberation from state income taxes. The Governor’s special tax program had already eliminated taxes on profits for 191,000 businesses, including several of Steven’s Genesis Health Clubs.
Since then, in a supposed attempt to ‘level the playing field,’ Steven has sought to force the YMCA to pay tax or some payment in lieu of taxes. (Even though the Y, and other non-profits, make genuine efforts to make exercise affordable across a wide range of income levels.)
“Continuing to shrink the tax base in the face of severe spending cuts,” said Steven in 2011, “really makes no sense.” His efforts two years later make us doubt his sincerity. If actions speak louder than words, his more likely 2013 quote would be, “To hell with the tax base, we need our special privileges.”
The property tax break will cost the state treasury an estimated $4 million. And that’s not the half of it—well, a bit more than the half of it. The original proposal, rejected by the Senate, was for an additional $3.4 million in sales tax exemptions. It’s like used-car dickering: Start with a really high price tag and make an outrageous cost more palatable. Except used-car for-profit rehabilitators are much more honest than Steven’s used-body rehabilitation program, at state expense, i.e., at ours.
Area Senators voting for it were Sens. Arpke, Bowers, and Ostmeyer. Senator Emler voted against it. We can’t account for the other Senators’ votes, but perhaps Senator Arpke’s can be explained by his attitude toward corporations expressed in the recent legislative forum, to the effect that he thinks “corporations can do whatever they want with their money.” And he seems eager to help them get more of ours to accomplish it.
Despite the Senate vote, it’s not too late. SB72 has been referred to the House Taxation Committee. Contact your local representative and tell them such special breaks have no place in state policy.
Perhaps it’s time for an Exodus from Genesis?
And as importantly, from the dogma that all private business is hallowed, and by definition provides much more efficient and superior service than publicly-funded entities–like community fitness centers and schools.
As for the Senate, as the Star article put it, “The new conservative majority has lost any standing to lecture Kansans about the need for fiscal responsibility.”
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