Brownback concedes his tax cuts will cause big problems
Yael T. AbouhalkahKansas Gov. Sam Brownback this week finally conceded the truth: The income tax cuts that he signed into law after arch-conservative Republicans pushed them through the Legislature this year will blow a big hole in the state budget for at least the next two years.
As a result, Brownback likely will have to promote the extension of a sales tax increase on Kansans.
An increase? Let me explain.
The Legislature long ago decided that the current 6.3 percent rate would drop to 5.7 percent in mid-2013.
But now Brownback may have to keep the higher tax in place for, well, who knows how long.
As even fellow GOP supporters point out, this would be considered a tax increase. After all, Kansans have been told the last few years that the rates would go down to 5.7 percent. If they don’t, the rates will remain higher than that.
“I’m not surprised that he wants to use the sales tax, but at the same time, the Legislature made a promise that it should end,” said Senate Ways and Means Committee Chairwoman Carolyn McGinn, a Sedgwick Republican. “I see it as a tax increase.”
Why is all this happening? Because as Brownback now acknowledges, the state could lose hundreds of millions of dollars in tax revenues because of the income tax reductions.
Hmmm: Maybe Brownback and other slash-and-burn Republicans should have thought about all this earlier in 2012, when they were pursuing the tax cuts.
But this week the governor said, “There’s going to be a two-year dip” in revenues. “That’s the nature of these, when you cut taxes. If you cut them right, you get growth on the other side, but there’s a dip first.”
Of course, the governor claims the income tax reductions will lead to more jobs and higher revenues after two years.
But what if he’s wrong? What if he and the state Legislature - in his own words -did not make the “right” tax cuts?
Then Kansans can expect that higher sales tax to stay in place.
Phil Cardarella
7 months, 1 week agoActually, we are left with two possible explanations. Either the Governor and his friends are incapable of understanding mathmatics at a third-grade level, or they just flat LIED and replaced a progressive income tax with a regressive sales tax as the revenue of choice.
GOOOOLLEE! Wonder which?
Phil Cardarella
7 months, 1 week agoFYI: The nuns taught me you could go to Hell for lying, too, Guv.
William R. Nelson
7 months, 1 week ago“…the governor claims the income tax reductions will lead to more jobs and higher revenues after two years” - the caveat in that prediction being if Obama is not re-elected.
(Fixed that for ya)
Brian Mehnert
7 months, 1 week agoWay to misrepresent and misdirect, Yael!
INCOME TAXES were reduced.
Sales taxes are scheduled to be reduced.
Maintaining the current rate of sales tax is NOT raising income taxes.
Conservatives have for a long time tried to explain that collecting revenue through sales tax is far more efficient and productive than collecting revenue on incomes.
I would LOVE to pay 30% sales tax and no income taxes.
John Franson
7 months, 1 week agoConservative politicians aren’t opposed to all taxes, they’re opposed to income taxes, because these taxes are progressive and disproportionately affect the rich, whom they count on to finance their political campaigns. Sales taxes disproportionately hit the poor, whom Republicans couldn’t care less about except to use social issues to pander for their votes. Income taxes counter the regressiveness of sales and other taxes, and we can’t have that, can we?
George Hunsucker
Northland
7 months, 1 week agoWho wants to raise the cigarette taxes John? hint: your beloved kc star led by ms. shelly, a LIBERAL……
Mark Hastert
7 months, 1 week agoHa. LOL! Always quick with an excuse for why conservative policies fail. Ten+ years of Bush tax cuts and no prosperity, no explosion in job growth no nothin’. Two wars and a Medicare drug program on the credit card and squat to show for it. Geez, when will they “take responsibility” for their own ideas?
Kenneth N. Ciboski
7 months, 1 week agoThe Governor was in Wichita this past Friday at the Pachyderm Club. I think I heard him say that the tax-cut plan will attract a major growth in population becassue businesses will want to come here. Again, he talked about the “Texas” model and how California was losing out because of high taxes. The question: Is population the key variable in solving our economic woes?
Mark Hastert
7 months, 1 week agoI would LOVE to pay 30% sales tax and no income taxes.”
..and this is why the wealthy prefer a sales tax too. The poorer of us will pay taxes on every dime they have and the rich will pay on only a fraction because they spend a smaller amount of their greater earnings. Now, a sales tax on the purchase of stocks, bonds and other securities would level the playing field.
Helen Stoll
7 months, 1 week agoHe also fails to address what companies/people will want to move here after the 2+ years of miserable funding have decimated our school systems.
George Hunsucker
Northland
7 months, 1 week agoFunding is not the problem or the solution to our schools Helen IMO…
Accountability and CHOICE–not labor barons are the solution….
Paul Jewell
6 months, 2 weeks agoMy property tax has gone up twice since Kansas Republicans “Cut” other people’s taxes. The fees for licences are going up. Now they want to tax boats and RV’s at a higher rate. Kansas Republicans do not cut taxes…they increase them.