Kansas Governor Sam Brownback said recently he had not ruled out extending the 6.3% state-wide sales tax rate, which is supposed to drop back to 5.7% in July.
Here’s the math. The 2010 Kansas Legislature passed Brownback’s huge income tax reduction which … according to legislative researchers … will result in budget shortfalls of $2.5 billion over the next six years, starting with a $242 million deficit for fiscal 2014. Retaining the sales tax rate would bring in a projected $250 million a year.
Brownback was highly critical of the sales tax increase as a candidate, but now he may realize that it’s the only thing that may save his budget bacon.
While the income tax cuts help many Kansans and especially business owners, sales taxes fall disproportionately on the poor … who have now lost a food sales tax rebate and the child and dependent care credit.
Let’s keep our fingers crossed for all those new jobs and business opportunities that are supposed to come flooding into Kansas.
Our thought for today is from Theodore Parker:
“Magnificent promises are always to be suspected.”