But since the adoption of Brownback’s tax package, which included cutting the top income-tax rate by 26 percent and increasing standard deductions for married and single head-of- household filers, Kansas has gone from a $709 million surplus to shortfalls, said Duane Goossen, who served as budget director for both Republican and Democratic Kansas governors.
“It’s here we go again, again,” Goossen said.
Brownback’s goal is to eliminate the income tax entirely. Repeated fiscal crises have slowed that effort. Last year, lawmakers raised the sales tax to 6.5 percent from 6.15 percent, and boosted the cigarette levy by 50 cents a pack. They eliminated most income-tax deductions and halved property-tax and mortgage-interest deductions.
Those moves, as well as siphoning more than $400 million from the highway construction and maintenance fund since 2013, haven’t stanched the bleeding. The Revenue Department reported that December’s take was short of expectations by $26 million. Kansas budget director Shawn Sullivan said an additional $25 million will be taken from transportation funding next year.
Divided Opinion
Business associations have been divided on the tax break. The Kansas Chamber of Commerce, the largest such group, is a strong supporter, arguing that lower levies always speed job growth. At the local level, though, there is opposition.
"We certainly haven’t seen the trickle-down effect to keep it rolling through the economy. It hasn’t happened," said Tracey Osborne, president of the Overland Park Chamber of Commerce.
Osborne said schools and roads have been hurt by declining revenue -- a deterrent to economic growth.
Jason Ball, president and chief executive officer of the Hutchinson/Reno County Chamber of Commerce, said it’s premature to call the tax break a mistake. Low taxes are good for business, he said. However, the law should be re-examined because it hasn’t been a boon to job creation.
Tax ‘Fatigue’