Tax policy is one of the more important – and controversial – issues the Kansas Legislature wrestles with each year. One of the most daunting objectives in this process is balancing ongoing economic competitiveness with fairness.

A central component of this challenge involves business versus individual taxation. Because governing bodies are consistently strapped with limited resources, policy makers face difficult decisions on how to make progress in a given year.

I believe cultivating more high quality jobs, with a growing state economy and increasing personal incomes is the best first step. This reasoning explains my support for the corporate tax package recently advanced by the Kansas House of Representatives standing committee on Taxation (HB 2762).

The package increases new revenue from out-of-state businesses and redeploys revenue back into the Kansas business community; it remedies a current discrepancy in the tax treatment of in-state versus out-of-state companies. The legislation also reduces corporate income tax rates, improves the state’s main investment tax credit program and reduces the sales tax on research and development and deployment of telecommunications equipment.

The House Taxation Committee is committed to sustaining the positive growth trends in personal income that Kansans have experienced in recent years.

From 1990 through 2005, Kansas income growth trailed national figures, as well as our neighboring states. However, as a result of diligent and responsible public policy planning, Kansas has pulled ahead in the past two years.

The marketplace – fueled by Kansas workers – deserves most of of the credit for this progress. Assisting in this economic growth, however, has been the progressive tax policy passed by the Kansas Legislature the last few years. A concerted effort has been made to make Kansas a more attractive place to invest capital. Money can flow to any place in the world. Continuing to grow the skills of the Kansas work force and improve the long-term return on investment in Kansas is among the best decisions policymakers can make for every Kansan.

Sustained economic growth also allows us to make progress on other tax policy priorities. The House Taxation Committee plans to address a number of issues that concern all taxpayers, like lowering individual tax rates and providing stability to ever-increasing property tax bills.

If Kansans can continue to make strategic long-term investments in the Kansas economy and maintain our momentum, we can make progress on other important issues. I believe the contents of this year’s corporate tax package is a modest step in the right direction – one that we can achieve in this difficult year.

– Rep. Wilk represents the 42nd District which includes the cities of Linwood, Tonganoxie and parts of Lansing and Leavenworth. In addition to being chairman of the House Taxation Committee, he also serves on the House Veterans, Military and Homeland Security and the Government Efficiency and Technology Committees.