Kansas Tax Revenues Fall in October
November 1, 2013

(AP) – The Kansas Department of Revenue says the state collected nearly $18 million less in taxes than anticipated in October.

Figures released Thursday also show tax collections have been $27 million short of expectations since the fiscal year began in July.

The biggest reason is a shortfall in individual income tax collections.

For the month, Kansas collected $445 million in taxes, but officials had expected $463 million.

Kansas has collected $1.81 billion in revenue for the fiscal year to date, instead of the $1.84 billion expected.

The state anticipated $220 million in individual income collections in October but instead took in $187 million, missing the mark by 15 percent.

Kansas enacted massive income tax cuts in 2012 that have contributed to the revenue declines.

In Op-Ed, Missouri Budget Project Says Kansas Tax Cuts Aren’t Adrenaline, More Like Valium
August 14, 2013

The leaders of the Missouri Budget Project, Amy Blouin and Ann McKay, says the Kansas tax cuts enacted in the last two years, “promised a shot of adrenaline to the Kansas economy, so far it’s more like a shot of Valium.”
The charge comes in opinion piece published Wednesday in the St. Louis Post Dispatch.
The opinion piece for the Budget Project says the state of Kansas has $365 million less in state revenue now than before the tax cuts took effect.
Kansas Governor Sam Brownback and the GOP dominated Kansas Legislature say the tax cuts will spur a pro-growth business environment that will lead to more companies coming to the Sunflower State and bringing more jobs.
Brownback says the state government is more efficient now.he has said repeatedly the state spending cuts will not affect “core services”, such as public education and public safety.
Missouri is going through a tax cut battle of it’s own. The Republican dominated Missouri Legislature passed a series of tax cuts this year intended to respond to the cuts made by Missouri’s neighboring states, including Kansas.
The bill was vetoed by Democratic GovernorJay Nixon. He claims it will harm education in the state and is a flawed bill.
The Missouri package includes the first reduction in personal incomes tax rates in more than 90 years.
Missouri lawmakers, return September 11 for a veto session.
The lawmakers may try to override the Nixon veto at that meeting.

Here’s the full opinion piece:http://www.stltoday.com/news/opinion/columns/missouri-shouldn-t-follow-kansas-down-the-road-of-decline/article_d3e9e11f-2131-5836-8bfb-fd452b503539.html

Former Nixon Ally On Ford Now Cites Kansas Tax Cuts in Veto Override Campaign
July 19, 2013

One of Governor Jay Nixon’s closest allies in his battle to save Kansas City’s Ford auto assembly plant is now blasting his veto of the tax cut bill.

In an opinion piece called, “Numbers dont lie…Kansas profiting from the tax cut”, Associated Industries of Missouri President Ray McCarty cites economic growth in Kansas as an example of how state tax cuts work.

“Governor Nixon says lowering taxes to raise revenues is a risky experiment. He knows better, and the proof is just across the border,” McCarty writes.

McCarty points to the Bureau of labor Statistics report from May 2012 until May 2013.

He says 9,500 new jobs were created in the Kansas City metro.

“All 9,500 jobs were on the Kansas side of the border. Missouri’s number stood at zero…stagnant,” said McCarty.

Recently Governor Nixon was asked the $2.2 million from businessman Rx Sinquefield to pay for an television campaign urging public support for the September veto override effort. At the time Nixon said that was just one man against six million Missourians.

“Governor Nixon is right about one thing: this fight is six million to one: six million taxpayers that would enjoy a tax cut against one Governor that vetoed the bill,” according to McCarty.

Here’s the whole piece:

Numbers don’t lie…Kansas profiting from tax cut

While Governor Nixon travels the state telling taxpayers he can’t cut their taxes, Kansas cuts taxes and welcomes new jobs.

When Kansas passed a series of tax cuts for businesses and individuals during the 2012 legislative session, the media and liberal politicians scoffed. "How can state revenues grow if taxes are cut?" they asked. Gloom and doom followed. Media and politicians across the country, even within the state borders, predicted financial chaos, massive state service cuts, even bankruptcy.

But as Fiscal Year 2013 ended, you could have heard a pin drop when the Kansas Department of Revenue issued a simple statement that the state ended the year with $86.6 million more than estimates projected, $159.6 million more than the state had taken in during the previous fiscal year. Tax receipts for June alone beat monthly projections by $25.1 million.

No blaring headlines in the large city daily newspaper across the border in Missouri. Nary a mention on local television or radio. It was quieter than Whoville the morning after the Grinch stole Christmas.

"How can this be?" the puzzled editorial boards must have clucked.

The answer lies in the latest numbers from the Bureau of Labor Statistics. In the period from May 2012 to May 2013 total non-farm employment in the Kansas City, Kansas – Missouri statistical area rose 0.9 percent, 9,500 jobs. All 9,500 jobs were on the Kansas side of the border. Missouri’s number stood at zero…stagnant.

Kansas is drawing new business. Existing businesses spurred on by lower tax rates are hiring more employees, or giving higher salaries to current workers. The increases in workforce and salaries are driving individual and sales tax collections higher.

Governor Nixon says lowering taxes to raise revenues is a risky experiment. He knows better, and the proof is just across the border. This is a pattern that is being repeated in other border states such as Oklahoma where tax revenues continue to grow even as the legislature continues to cut tax rates.

So as Governor Nixon continues to barnstorm on the taxpayers’ dime, claiming the support of six million Missourians, saying only one man stands for cutting taxes, Kansas makes off with our jobs, our taxes and laughs all the way to the bank. Governor Nixon is right about one thing: this fight is six million to one: six million taxpayers that would enjoy a tax cut against one Governor that vetoed the bill.

Ray McCarty


Associated Industries of Missouri

Kansas Ends Fiscal Year With More Money than Predicted
July 6, 2013

(AP) – A new reports shows Kansas collected nearly $87 million more in taxes than expected in the fiscal year that ended June 30.

The state Revenue Department said Friday that tax collections totaled about $6.2 billion in the 2013 fiscal year, nearly $160 million more than in the previous year.

Collections in June were $567 million, about $25 million more than expected.

New laws enacted last year reduced the state’s personal income tax rates and eliminated taxes on roughly 191,000 businesses in certain categories

Brownback to Sign Tax Cut Package in Johnson County Thursday
June 13, 2013



Kansas Governor Sam Brownback will be in Johnson County Thursday to sign the contentious tax but bill that tied the Kansas Legislature into knots and forced a lengthy overtime session by lawmakers.
The bill extends the sales tax extension lawmakers approved three years ago, but at a reduced rate.
Governor Brownback wanted the entire extension, keeping the state sales tax rate at 6.3% continued. The republican Governor said the extension was needed to compensate for his tax cuts package enacted in 2012.
Some members of his own party, however, resisted that move.
Some members of the House, in particular, had promised voters they would roll the entire extension back when it expires this summer.
The sales tax rate was to return to 5.7% at the first of July. The compromise that broke the tax cut deadlock drops the sales tax rate to 6.15%.
The Governor also did not get his entire plan of additional tax cuts passed.
Brownback proposed dropping the state’s top tax bracket rate to 3% from 4.9% by 2017
He also proposed lowering the bottom tax rate from 3% to 1.9% by 2016.
Instead, lawmakers reduced the top bracket to 3.9% and the lowers rate to 2.3%
The tax plan raises $777 million. The state, under the plan, would not see revenues drop until 2018.
Although the Governor did not get the plan he sought from the GOP dominated lawmakers, he praised its passage as “a pro-growth budget”.
Brownback also has a signing ceremony set in Wichita today.