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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

Tony Kisner 12 months ago

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

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Moritz 12 months ago

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

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Political 12 months ago

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

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Wally 12 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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Centerville 12 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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Scut Farkus 12 months ago

The state of Kansas is being run by the Koch brothers. Brownback doesn't even wipe his butt without Koch brother approved TP. They filled his war chest. Koch related interests have given Brownback hundreds of thousands of dollars over his 16-year career, more than any other candidate. They bought him Dole's Senate seat and they bought him the Governor's job.

4

Dick Sengpiehl 12 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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Charles L Bloss Jr 12 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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mikekt 12 months ago

" What Me Worry, The Public Are A Bunch Of Idiots ! ".......ALFRED E. BROWNBACK, Gov..

2

toe 12 months ago

This article made me happy.

1

oldbaldguy 12 months ago

I thought I was being sarcastic?

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autie 12 months ago

Smaller? By intruding into the lives of private citizens with unconsitutional laws, the AG predicts in excess of $1 million in legal fees to defend the state. That is not efficient by any standard. The hole is growing daily and come July 1 it will open into an abyss. For you Brownback supporters, that is a metaphor for we are going to be so friggin broke we won't even be able to pay attention.

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drake 12 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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oldbaldguy 12 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?

1

John McCoy 12 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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autie 12 months ago

There are thousands of people poised and ready to move. They are moving to Kansas because it is the land of milk and honey. Don't you see all the new factorys being built and the businesses flocking to our state? The state with no taxes so it is attractive to business. Come on..just look. You can see, can't you?

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somebodynew 12 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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