Issue Position: Economy

Issue Position

KANSAS ECONOMY

The outcome of budget and tax discussions will affect not only how the state prioritizes funding for obligations and services, but will have lasting implications for our state economy. The key factor I will look for in budget and tax proposals is "how do these policies improve employment and business opportunities for Kansans?" Our fiscal policies must yield positive measurable results.
SPENDING

The spending policies of the past have put Kansas on a fiscal collision course. Education, Medicaid, roads, public safety, administration of basic functions, and social/safety net programs all compete for limited resources. Spending on all of these programs has skyrocketed while state revenues stagnated or declined. In short, the state over-committed and we must now make tough choices as to which programs to continue funding and at what level. The road ahead won't be easy, but it was taking the easy road that created this mess. Just like Kansas families, state government must prioritize its needs.
TAXATION

Gov. Sam Brownback initiated reforms to grow our economy and fuel state revenues. The first of these reforms passed during the 2012 legislative session providing tax relief for all Kansas taxpayers. Kansas has since received attention in the business media, leading many business owners to consider moving operations to Kansas.

A short term lag is anticipated before the reforms provide the intended boost to the economy and state revenues. To bridge this gap, it has been proposed to continue the current state sales tax rate, which was increased as a "temporary" revenue fix in 2010. For taxpayers, continuation of the otherwise "temporary" increased portion of the sales tax cost would be far more than offset by continued reductions in income tax rates. However, I am seeking some answers before committing to this path, and most importantly, I would like to hear your thoughts on this proposal.

Gov. Brownback has also advocated for reducing our income tax rate to zero. To reach that goal more quickly, he has suggested phasing out certain deductions including the mortgage interest deduction - taxpayers could still take the much larger deduction on their federal tax return, this proposal only affects state income taxes. Kansas Dept. of Revenue studies indicate that most taxpayers would save far more from reduced tax rates than any savings from this deduction. This is one of several tax proposals that the Legislature will be examining. I would appreciate your comments in this regard.

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