Facing a budget meltdown, Kansas needs a better tax system, a child advocacy group contends in a report released Thursday.
“We know that one reason our state is facing such serious budget shortfalls is because our current tax system does not reflect the current economy,” said April Holman, director of economic policy for Kansas Action for Children.
“There’s no quick fix. But, an outdated system, combined with economic hard times, makes this the right time to address the root of the budget problem in Kansas,” Holman said.
The report comes out after state officials in the recently completed legislative session administered three rounds of budget cuts to public schools, higher education, social services and public safety. With revenues continuing to plummet below projections, more cuts are expected.
And the KAC argues against the budget problems being too much spending.
“Kansas taxes, as a percentage of personal income, have remained largely unchanged over the past 40 years, typically ranging from 11 to 12 percent,” the report said.
The KAC report says that the state loses a great deal of revenue by failing to apply the sales tax to services. In addition, sales tax exemptions have cost the treasury $4 billion in 2008 alone, it said.
And tax cuts approved by the Legislature over the past five years will reduce monies to the state by $1 billion through 2013, the report said. In addition, state policy allowing the diversion of tax dollars for economic development has become more prevalent in recent years and further depletes resources.
The KAC recommends the creation of a commission modeled after the federal military base closure commissions that would introduce tax modernization legislation for lawmakers to consider.
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SettingTheRecordStraight (anonymous) says…
Sorry, KAC, but state government already takes too much from Kansas families, regardless of what your taxpayer-funded billboards say.
The last thing our struggling economy needs is higher taxes.
avoice (anonymous) says…
This is too unreal. Kansas is well-known to be one of the most regressive states in the union when it comes to taxes. A lot of struggling businesses already look wistfully to Texas, where business is thriving. Coincidentally (or not), the entire Texas economy is thriving.
One of the most ludicrous statements in this article: “Kansas taxes, as a percentage of personal income, have remained largely unchanged over the past 40 years, typically ranging from 11 to 12 percent,” the report said. Is this to imply that, as a percentage of personal income, taxes should actually continue to rise? At what point would this "advocacy" group be satisfied to have taken enough income away from families that they would have sufficient sums to give back to those poverty-stricken families in the form of "relief"?
Sheesh! Whatever happened to just giving people the opportunity to fend for themselves by earning a decent wage and getting to keep about 90% of it?
bunnyhawk (anonymous) says…
And just how would the additional revenue raised through 'services' like pedicures and personal fitness coaches imperil any Kansas family?? And yet the funds raised from taxing luxury services would provide Kansas with sufficient revenue to stop the current practice of balancing the state's budget on the state's most vulnerable citizens-----the very young and the very old.
Boston_Corbett (anonymous) says…
rut-roh
Look out for the barbers and beauticians. (and the attorneys and accountants)
I still say a nickle tax per Google search and Marion would solve the state's budget problems.
BigDog (anonymous) says…
How about that ...... a tax exempt organization is advocating for Kansans to pay more taxes ...... hmmmm something is wrong with this picture.
none2 (anonymous) says…
What is "Better" Taxes? Is that a rock band?
I think what they really mean, is that we should all quit our jobs and work for the government and also nationalize all businesses.
Then we can all vote to keep our jobs, vote to pay ourselves more money, and vote to keep our departments with as much funding as we dream up. We can just have the government print more money if we don't like it.
situveux1 (anonymous) says…
Not a spending problem? Increases of 8% per year for years isn't "too much spending?" Get real.