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Archive for Wednesday, September 1, 2010

Kansas collects $38M more than expected

The state collected $38 million more than expected this month.

September 1, 2010

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— Kansas collected nearly $38 million more in taxes than anticipated in August, raising hopes Tuesday that the state can avoid major reductions in its current budget.

The state Department of Revenue issued a preliminary report showing that the state collected $414 million in taxes during the month. That’s 10 percent more than the $376 million that had been forecast by the state’s official revenue projections.

Both retail sales and individual income tax collections were stronger than anticipated. The surplus made up for a small shortfall in tax collections in July, the first month of the state’s 2011 fiscal year. For the two months, tax collections were a net $35 million ahead of expectations.

Democratic Gov. Mark Parkinson saw the latest figures as confirmation that Kansas’ economy isn’t going to suffer even though the state raised its sales tax from 5.3 percent to 6.3 percent on July 1. The revenue projections accounted for the increase.

Parkinson pushed for the tax increase to avoid further significant cuts in education funding, social services and other programs following multiple rounds of budget reductions in 2009. Critics of the tax increase predicted it would blunt any recovery.

Conservative Republicans still believe the sales tax increase will dampen economic activity. But GOP House Majority Leader Ray Merrick, of Stilwell, acknowledged that the August figures could indicate a positive trend.

“Let’s just hope it continues,” he said.

Comments

Tracy Rogers 3 years, 7 months ago

All you naysayers just can't admit that you may have been wrong. Like it's said, it's too early to tell, but it's a good sign that economy may be turning around. There's more money out there to be spent than what all the doomsday people think.

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Bad_Brad 3 years, 7 months ago

YEEEEEEEHAAAAAW!!!!! More money in the tax coffers. Get out the checkbook. Time to spend, spend, spend!!!!!!!

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Flap Doodle 3 years, 7 months ago

Liquor and ammo sales are up, I expect.

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newmedia 3 years, 7 months ago

Let's spend it just as fast as we can so we can still continue to beg for higher taxes.

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Practicality 3 years, 7 months ago

"Democratic Gov. Mark Parkinson saw the latest figures as confirmation that Kansas’ economy isn’t going to suffer even though the state raised its sales tax from 5.3 percent to 6.3 percent on July 1. The revenue projections accounted for the increase."

Unlike the government, people live on a finite amount of money. Eventually, people will purchase less because they will have less money to spend. Two months is not enough time to see how the sales tax increase will play itself out.

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Hope_And_Change 3 years, 7 months ago

They don't even know how much of the fruits of our labor they take.

Government Obamacare will be run like everything else run by them.

Government and money will soon part.

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MyName 3 years, 7 months ago

Something is wrong with people who don't understand that an unexpected increase in revenue could correlate with the local economy turning around a bit. This is good news (though not necessarily great news).

And I think more detailed information on the month may come out later. It's only September 1st after all.

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whats_going_on 3 years, 7 months ago

how much of that was because of the tax increase in Lawrence? And how can they just not know that...they should know sales numbers, etc...not too hard to figure it out from there, I would imagine. Smells fishy to me.

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Centerville 3 years, 7 months ago

Something is really wrong when we celebrate taking millions of dollars away from Kansans just so the government won't be inconvenienced. Every cent of that money would have been better spent by the individuals who earned it than by the thugs who took it..

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