Kansas tax plan

Stephen Koranda / Kansas Public Radio

Kansas lawmakers might try to increase taxes next year as one way to solve the state's budget woes, but that could be too little, too late for the immediate budget challenge.

The state faces a $350 million budget shortfall in the current fiscal year, which ends in June. Undoing tax cuts and implementing tax increases would help eliminate a budget shortfall for next fiscal year, but generally would not help out in the current fiscal year.

Washburn University Political Science Professor Bob Beatty says that’s what makes this such a tough challenge.

Stephen Koranda / Kansas Public Radio

Groups representing Kansas teachers, state workers, contractors and others are proposing a tax overhaul they say would solve the state’s budget problems. The plan would undo some tax cuts made in recent years by raising the top income tax rate. It would also reinstate income taxes on hundreds of thousands of businesses.

Former Kansas Budget Director Duane Goossen and others revealed the tax plan Wednesday in Topeka. He says the tax cuts have hurt the state’s ability to invest in needed services and the proposal would reverse that.

The state Department of Revenue reported on Tuesday that its tax collections fell $21 million dollars short of expectations in September.

The Department said corporate income tax collections exceeded expectations, $86.5 million dollars in corporate tax collections in September, 33 percent more than the predicted $65 million.

Even with the corporate taxes, the state collected $521 million dollars in taxes for September, 4 percent less than the $542 million it had anticipated.

The chair of the Kansas House Tax Committee is responding to some Democrats' claims about the tax plan passed by the Legislature last weekend.

Kansas lawmakers just returned to the Statehouse on Wednesday, but already it looks like a disagreement on taxes could push the session past lawmakers' 80-day deadline.

House and Senate Republicans disagree on whether to extend a temporary sales tax increase. It's set to expire on July 1, and House leaders want to let it end as planned. Republican leaders in both chambers want to lower income tax rates, and Senators say keeping the sales tax elevated allows the state to lower income tax rates more quickly.

Analysts Call Kansas Tax Plan Worst In Nation

Apr 16, 2013

In a recent article in Governing Magazine, two tax analysts were asked which state had passed the worst tax policy in the last year, and both said Kansas.

One of the analysts was from the left-leaning Center on Budget and Policy Priorities and the other was from the right-leaning Tax Foundation.