New Kansas flat tax plan threatens to take us back to Brownback era of fiscal disasters

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Joan Wagnon
Joan Wagnon

Just a few years ago, Kansas was making headlines for all the wrong reasons. Dramatically underfunded public schools forced our students into four-day schoolweeks, causing teachers and educators to flee the profession. Roads and bridges went without repairs. Our economy was in freefall.

Courageous legislators put an end to then Gov. Sam Brownback’s disastrous tax plan and restored the Kansas economy. Unfortunately, some of those legislators didn’t win reelection.

While my memory of those days remains crystal clear, it seems some in the state legislature may need a refresher.

The Republican-controlled legislature has proposed a flat tax — a single tax rate applied to every taxpayer regardless of income — that plan threatens to land us right back where we were just a few years ago under Brownback.

Under Brownback, the legislature reduced the tax brackets from three to two, causing our tax revenues to tank. Can you imagine the chaos if we go to a single bracket— a flat tax! My years in the legislature and Department of Revenue tell me a flat tax is not fair to all, and it is not sustainable.

So, what would the flat tax proposal in SB 169 mean for Kansas families?

An analysis by the Kansas Department of Revenue shows that low-income filers would see an average tax reduction of around $42.

On the other hand, wealthier Kansans — those making $250,000 or more — would enjoy an average tax cut of more than $5,300 per year.

In essence, 3% of Kansans would be getting more than 43% of the tax breaks allowed in SB 169.

The fiscal note for the three Senate-passed big tax bills (exempting retirement income, removing income tax on social security and sales tax on food, plus the flat income tax) will cost the state $2.7 billion cumulative through fiscal year 2026. And, they have not put forward a proposal to pay for these tax cuts.

Based on what we saw under Brownback, we should know what to expect: Cuts to school funding, efforts to rob our state highway funds and a downgraded state credit rating.

Luckily, there’s a more responsible tax plan on the table. This year, Gov. Kelly proposed a slate of tax cuts in her “Axing Your Taxes” plan, calling for the complete and immediate elimination of the sales tax on food, diapers and hygiene products, a four-day back to school tax holiday in August and ensuring that no senior making under $100,000 pays full income tax on social security payments.

The differences between the Republicans’ $2.7 billion plan and Gove. Kelly’s $566 million plan couldn’t be clearer. First, Gov. Kelly’s plan provides relief for every single Kansan, while the Republicans’ plan favors the already rich, with no guarantee that money will remain in Kansas. (Nonresident filers will claim $62 million per year or about $200 per return.)

Second, Gov. Kelly’s plan won’t bankrupt our state or steal essential funds from education, infrastructure projects or essential services. It will provide real tax relief to Kansas families.

To put it plainly, Republicans in the state legislature are attempting to resurrect Brownback’s disastrous “tax experiment.” Just tell your legislator to vote no.

Joan Wagnon served in the Kansas House of Representatives from 1983-1994, chairing the House Taxation Committee from 1991-1992, and later serving as secretary of revenue from 2003-2011. She is a former chair of the Multistate Tax Commission and the Streamlined Sales Tax Governing Board. She was mayor of Topeka from 1997-2001.

This article originally appeared on Topeka Capital-Journal: Kansas flat tax threatens return to fiscal disasters of Brownback era