On Monday, Gov. Laura Kelly vetoed a tax cut plan that overwhelmingly favors the wealthy to the disadvantage of the less than.
Kelly singled out Republicans’ 5.15% flat tax proposal for its inherent disparities.
If enacted into law, the flat tax would reward those who earn more than $250,000 a year — 2% of all Kansans — an average $3,084. Middle class wage-earners — those who earn $50,000 to $75,000 — would receive on average $97; those who earn between $20,000 and $50,000, a $65 tax cut.
There’s a better way to share the state’s current good fortune, Kelly said, and proposed a stipend of $450 for those who pay income taxes; $900 for those who file jointly.
The benefits are obvious.
The one-time bonus — a total $820 million — doesn’t hamstring future budgets when things turn south.
And it rewards those who need it most.
To point out the obvious, high-wage earners don’t need a commensurate bonus, while those in the lower tiers could certainly appreciate the boost.
Critics of the governor’s veto accuse her of wanting to keep Kansas’ current budget surplus “all for herself,” according to Elizabeth Patton of the Americans for Prosperity.
That’s how the AFP regards Kelly’s goal of funding public schools and other state responsibilities.
Earlier this session Americans for Prosperity proposed a flat tax that would cost the state $1.5 billion a year.
Republicans’ current proposal of a 5.15% flat tax depletes revenues by $318 million a year.
The AFP’s goal is to eliminate the state income tax altogether — a sure path to bankruptcy.
States that enjoy robust sales tax revenue from tourism — Florida, Texas, Nevada — can follow that path. In Kansas, however, the money’s not there.
There are three “legs” to funding the state budget — income, sales and property taxes.
