Brownback on Tax Cut Deal

KC Star:
Kansas Gov. Sam Brownback said Friday the package of tax cuts that legislators have sent him isn’t the exact plan he wanted in order to stimulate the economy, but it is one that would create growth.

The Republican governor also said that to make the series of reductions in individual income taxes and elimination of some taxes for an estimated 191,000 businesses work, Kansas will need to constrain its spending in future years.

“I’m excited we’re going to get fundamental tax reform for the state of Kansan,” Brownback said. “I’m looking forward to either signing this bill or if something is worked through the Legislature that’s different from this.”

New projections from legislative staff estimate that the tax plan could result in deficits of nearly $2.5 billion in fiscal year 2018.

Brownback said economic models show the plan will create jobs and grow the state economy sooner than the compromise proposal. The approved plan is based on 4 percent annual revenue growth, but Legislative Research Department projections indicate the state would start showing revenue deficits of $242 million in 2014, requiring belt-tightening by state government.

“The rule in government is you will either spend the money to grow the economy or grow the government. We’re going to be able to handle this,” he said.