Seeing since Kansas is on the brink of financial disaster, would it be so terrible to go back to the tried-and-true ways of funding state obligations? KANSAS’ tax structure creates distinct winners and losers. The ITEP’s tax inequality index ranks Kansas ninth in the nation, meaning the tax rate is punitive to middle- and lower-income wage earners to the advantage of the wealthy.
Just two years ago, Kansas had adequate funds, including a rainy day balance, all because of a moderate level of income taxes.
But ever since those rates have been significantly reduced, the state is in crisis mode, slashing and burning crucial programs and services.
The “experiment” to spur growth through reduced taxes has not worked, plain and simple, and there’s nothing to suggest it will for the future.
Nearing the end of their first two-year budget, legislators are scrambling to meet a deficit of $344 million, even with $380 million in reserves, before the fiscal year ends June 30.
And if we think this budget cycle has been bad, we don’t dare look ahead to the 2016-17 budget, which will start out with a projected $600 million shortfall.
In a Feb. 13 piece in the New Republic, a conservative publication with a hint of libertarianism, it was suggested Kansas rethink its income tax structure.
The wealthiest Kansans — those in the top 1 percent — pay less than half the tax rate of the middle class.
Again, those who earn more than $439,000 a year typically pay 3.6 percent of their earnings to state and local taxes; compared to a tax rate of 9.5 percent for those who earn between $38,000 and $59,000 a year.
And for the lower incomes, the injustice is even greater. The lowest bracket, those who earn $20,000 and less, pays a tax rate of 11.1 percent in state and local taxes, according to the Institute on Taxation and Economic Policy.
If that top 1 percent of income earners were to pay the same tax rate as those of the middle class, Kansas would see an additional $938 million. Taxing the top 20 percent of income earners, those who earn $98,000 a year and more, the same rate as the middle class would net an additional $2 billion.
So clearly, we don’t need a “fair” or “flat” tax where everyone pays the same rate, but there certainly is something to be gained if legislators saw that the wealthy were not so favored.
Basic math and a conscience are all needed to get the state back on track. Would only politics be kept out of the picture.
— Susan Lynn
Financial crisis should force debate on KS income tax structure
