Governor Sam Brownback admits we could see a dip in revenue to Kansas government because of massive income tax cuts enacted earlier this year. I’m sure the governor was aware of that possibility when he and the state legislature passed their optimistic tax cut plan, predicting that lower income and business taxes will make Kansas a mecca for jobs and economic growth.
The governor now says he has not ruled out asking that the current sales tax remain in place longer than planned, to make up for budget shortfalls that may occur. The 6.3% sales tax is scheduled to drop to 5.7% in July of next year. Governor Brownback says he’ll wait and see what happens in the next few months before deciding about the sales tax.
I’m one of the skeptics. I don’t believe massive tax cuts will do much for economic growth. I fear they will demolish the state budget … and cutting spending won’t remedy the shortage. It will be necessary to raise revenue … taxes, that is.
Our thought for today is from Philip Crosby:
“If anything is certain, it is that change is certain. The world we are planning today will not exist in this form tomorrow.”