Gov. Kelly’s plan calls for the immediate elimination of the state’s sales tax on food, diapers and feminine hygiene products. It would create an annual sales tax holiday for school supplies and cut taxes on Social Security for retirees. It does all of this without breaking the bank or taking our state back to the economic catastrophe from the previous administration that we’ve just recovered from. And, most important, it is fair — providing relief for every Kansan.
The “Axing Your Taxes” plan would save Kansas families — not just those at the top — $500 million over the next three years, all while balancing the budget and making our state’s economy more equitable.
Meanwhile, the Republican proposal for a flat tax — a single tax rate applied to every taxpayer regardless of income — would be Robin Hood in reverse, cutting taxes for the rich while increasing taxes on middle- and lower-income taxpayers. The Kansas Department of Revenue estimates the proposal — H.B. 2061 — would cost the state more than $1.5 billion in lost revenue once implemented. That is nearly double the cost of Sam Brownback’s disastrous “tax experiment” that tanked our economy, left our schools underfunded and prevented the state from funding essential programs.
It’s not hard to remember: Just a few years ago, many programs that helped Kansans with basic needs were cut, our students were forced into four-day weeks while our schools faced record teacher shortages, and our state delayed and even tried to skip Kansas Public Employees Retirement System payments for our retirees. To balance the budget, the Brownback administration opened the “Bank of KDOT,” taking money from highways and roads — and even that kind of creative accounting didn’t allow the state to pay its bills. We took on higher debt, causing our credit rating to be downgraded. Job creation and economic growth were stagnant.
The state of Kansas was in economic free fall, forcing the Republican supermajority to agree to repeal Brownback’s tax experiment.
The current proposal for a flat tax is the second coming of the Brownback tax experiment — the idea that if you cut taxes for people at the top, wealth will trickle down to lower- and middle-income families. It was a scheme that failed Kansans disastrously.
Since taking office, Gov. Kelly has turned things around. She has ensured the funding of programs that assist our middle and working-class families, fully funded public schools every year, and caught Kansas up on KPERS payments. She’s made Kansas a place where in-state businesses grow and to where national and international businesses like Panasonic want to move. Her ability to responsibly manage the budget has put us in a position to provide fair tax relief to all Kansans while not repeating the mistakes of the past.
We’ve come so far as a state, but the flat tax proposal currently being considered by the Legislature would take us right back to the days of mismanaged budgets, underfunded public schools and economic catastrophe. Gov. Kelly’s plan provides fiscally responsible relief that benefits every Kansan without hurting services for our middle- and working-class families. When it comes to responsible tax relief, Governor Kelly’s plan makes economic sense.
About the author: Donna K. Ginther is director of the Institute for Policy & Social Research at the University of Kansas.
