When Kansas legislators arrived in the Capitol today they faced a conundrum that they likely will permit to haunt them for some weeks hence.
By June 30 they must:
— Find money or some realignment to make up a $281 million shortfall for fiscal year 2017, which ends on June 30.
— Increase school funding to the point adequate and equitable funding exists for all public schools.
— Find some means to generate $1.1 billion to meet deficits facing the state up through the next two fiscal years ending June 2019.
Assuming a tax hike is the only way forward with any actuarial clarity, the obvious avenue at the very least is to restore income rates cut in 2012-13 on a political journey that led to nowhere.
Two other taxes open to the state are sales and property.
Increasing the sales tax is a fool’s errand. Sales tax, including that on food that has Kansans paying more than anyone else in the nation, already is bumping a glass ceiling. Statewide property taxes are lower than they were before the dot.com boom, but local authorities have reached into the pot so often that doing more in that arena would bring taxpayers’ wrath. Also, sales and property taxes are an unfair burden for the poor and elderly who struggle to meet household and health needs.
A graduated — at least two tiers — income tax is the logical answer, one that many legislators recognize. A flat tax of 5 percent has been mentioned, but it, again, would be unfair to those who are forced to watch every penny.
Income tax is the only means of magnitude to meet needs of the state budget.
IN FEBRUARY the House and Senate passed a bill to restore the 2012-2013 income tax cuts. Gov. Sam Brownback held true to his word and vetoed the measure, which had the support of a more moderate Republican legislative delegation and Democrats.
In the House, the veto was overridden with 85 votes, one more than required, but the Senate sided with Brownback to kill the bill, 24-16; 27 votes were needed.
The reversal was a bitter pill for supporters, but they have remained resolute, knowing that doing nothing, sweeping money from KPERS and other sources or making severe cuts, such as to education and safety-net programs, would be devastating.
The simple truth is supply-side economics, the golden ring Brownback tried to grab, has not worked with the income tax cuts of five years ago; evidence to the contrary is woefully lacking.
So, while legislators face a puzzle with many pieces, it isn’t one they should have to struggle with long into the night.
Restore the income tax cuts, make whatever provisions are necessary and be done with it.
— Bob Johnson
