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LJWorld.com weblogs Statehouse Live

Tax cuts will reduce state revenue more than Great Recession

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Topeka — State tax revenue is expected to decline more over the next fiscal year than it decreased during the three years of the Great Recession, according to new state fiscal estimates.

New revenue figures show that the state will receive $5.454 billion in tax revenue for the fiscal year that starts July 1— a decrease of $745 million from the estimated $6.199 billion in revenue during the current fiscal year, which ends June 30.

During the recession, tax receipts fell to $5.191 billion in fiscal year 2010 from $5.809 billion in fiscal year 2007. That's a decline of $618 million over a three-year period.

The bulk of the $745 million reduction in receipts over the next fiscal year includes $450 million less in income tax and $270 million fewer dollars in state sales tax.

The revenue estimates are compiled by the Consensus Revenue Estimating Group, which includes the state Division of the Budget, Legislative Research Department and three consulting economists from state universities.

Last year, Gov. Sam Brownback signed into law cuts in income tax rates, including exemptions from state income taxes on non-wage income for 190,000 businesses, and eliminating tax credits for low-income Kansans.

In 2010, facing record revenue declines, the Legislature approved raising the state sales tax from to 6.3 percent from 5.3 percent, and then allowing that rate to fall back to 5.7 percent after three years.

Saying he wants to avoid cuts to higher education, Brownback is now pushing to make the 6.3 percent sales tax permanent. Democrats say the tax plan signed by Brownback has produced a fiscal crisis.

Comments

somebodynew 1 year, 4 months ago

Can not wait to hear how BB spins this. We all knew it was coming, even if he refuses to talk about it.

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Lane Signal 1 year, 4 months ago

Yes. That's the part that bothers me most about the way Brownie is running the show. It is so obvious that he and his crew were completely aware of the crisis these cuts would create. He stood up and lied about his belief that these cuts would be more than covered by the new revenue they would generate. Everyone knew it was a lie. Those who supported it and those who opposed it knew he was lying. Now he is using the crisis to justify tax increases that will impact the poor and middle class. And the biggest part of the insult is that Brownie does not really think he has to try to spin it. He just smiles and reaches into our pockets. He thinks we are too stupid to see that we are being robbed.

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Patricia Davis 1 year, 4 months ago

Well, until we stand up to the dictator, he is right.

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Mike1949 1 year, 4 months ago

I agree, why in the heck haven't we at least started the process of kicking him out?

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John McCoy 1 year, 4 months ago

Always sad to read about the devastation wreaked on my Kansas friends by their obviously repressed and obsessed governor. Our governor here in Texas is just venal, dumb, and embarrassing. Yours is downright destructive. Neither state is a particularly good place to be a woman who needs reproductive services or a family who is poor, but Kansas is bleeding now.

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Sally Piller 1 year, 4 months ago

Rick Perry is Sam Brownback's mentor. Didn't you know that?

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oldbaldguy 1 year, 4 months ago

i can buy a new computer with my tax break, but i do not believe that is what the Party had in mind. any big companies move to state since income tax chopped?

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drake 1 year, 4 months ago

Good. Smaller more efficient government should be the goal of everyone.

It's comical to see all of the piggies squealing at the trough when their portion of other peoples earnings are at risk of being reduced.

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question4u 1 year, 4 months ago

Good luck when you go to Fort Riley and tell those "piggies squealing at the trough when their portion of other peoples [sic] earnings are at risk" to be content with their 1% salary increase this year. It will be interesting to see whether you think that their response is comical, but hey, smaller government "should be the goal of everyone."

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Mr_B9 1 year, 4 months ago

When the little piggies start holding the current president accountable for waste and invasion of privacy (etc.) then I may listen to what they have to say. You just can't have it both ways.

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Greg Cooper 1 year, 4 months ago

And just what, drake, do you see in this situation that justifies your "smaller more efficient government" claim?

Let's see: intrusion into everyone's personal and sexual lives? NO. Costing the taxpayers (projected,and probably more in the long run) over a million dollars to defend stupid, intrusive, non-scientific, religion-based laws? NO. Purposely raising the amount of dollars the state WILL be short of its operating expenses because of stupidly uninformed tax law? NO.

The list goes on and on, drake. The list includes little to justify the "smaller more efficient government" you so blithley laud.

The upshot is that you and your unthinking, knee-jerk neo-conservative friends who now run Kansas are goiing to have to come to terms, and soon, with what the current version of the Republican party has done, and will be doing, to Kansas in the future. You will come to see, if you can bypass the talking points and really look at facts as they are, that this state is headed directly for economic disaster, and it won't be pretty.

If you and the majority of the minority of voters who helped cause this don't get it together, it will take decades to repair the damage done in the last two years to our state.

Your opinion is yours to keep or to modify, and I'd like to say I don't care what you think. Unfortunately, it is urgent that you and yours awaken to the real world, that you open your eyes to what is rather than what you've been told will be; that you begin to think for yourselves, gaining an understanding of the reality of the Brownback/Koch agenda.

And I do care. I care very deeply, because this state has begun a long trip down a dark tunnel with no visible light at the end, whereever it may be.

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oldbaldguy 1 year, 4 months ago

I thought I was being sarcastic?

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Greg Cooper 1 year, 4 months ago

Which is reason enough, toe, to be very, very worried about the facts in it.

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Charles L Bloss Jr 1 year, 4 months ago

It pleases me that someone finally recognizes that we are being taxed to death. I am retired, and our taxes should be frozen at the rate they were when I turned 65, like they are in TX. I would move back to TX in a heartbeat, but my wife won't go. She grew up here, and all her relatives, a considerable number, are in KS. There is no tax on groceries in TX, nor is their a huge personal property tax payment to renew vehicle tags. KS seems to be starting to wake up, hopefully more taxes will be eliminated or reduced. Seniors in this state are being screwed royally. Thank you Governor !!

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chootspa 1 year, 4 months ago

If you're retired, you can look forward to even higher sales tax and property taxes here. Those will hit you more than would income taxes, especially since those income tax cuts go primarily to people with pass-through businesses, and not to retirees. You can also look forward to driving around on worse roads as we rob Peter to pay Paul for those tax cuts.

If you wanted to maximise your retirement income, you should be pushing for taxes to shift in the other direction - primarily on income (fixed) and away from property (goes up every year) or sales (goes up with inflation). Freezing them at 65 is a great idea, but it isn't going to happen here until we stop hemorrhaging all the revenue we gave away to the Kochs for them to not actually make any new jobs with it.

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Dick Sengpiehl 1 year, 4 months ago

Many of us fiscal conservatives knew Brownback's cuts would have the results we are getting. Shame on those Kansans who voted for him and his Koch Bros GOP elected representatives.

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Centerville 1 year, 4 months ago

LJW starting to remind me of the SNL John Belushi news skits where he became so hysterical that he fainted and fell off his chair.

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Wally 1 year, 4 months ago

I agree with drake that smaller and more efficient government should be the goal of everyone. However, smaller does not necessarily equal more efficient, and a government can be too small to function effectively. You may need a bigger shovel to dig a bigger hole efficiently. You need the judgment skills to accurately evaluate the size of the hole you need to dig. When you need to buy a shovel, buy from someone who has shovels to sell. When you need to dig a big hole, but you only have a small shovel, don't spend your resources digging other holes that serve little or no purpose. And the basic rule of holes: when you find yourself in a bad one, stop digging.

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Political 1 year, 4 months ago

Does anyone see a Democrat who can make this an issue and win a gubernatorial election?

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Moritz 1 year, 4 months ago

Dare we hope for future Governor Davis? I'd vote for Paul, yes, yes I would....

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Tony Kisner 1 year, 4 months ago

The politically brave thing is to cut programs first then reduce taxes.

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