What are Kansas lawmakers thinking about this season? Tax cuts and rebates, for starters
If you’ve been too busy surfing Black Friday deals, testing your string of lights or stressing over the latest holiday charcuterie boards, you may have missed your Kansas Republican and Democratic legislative leaders donning white beards and red suits as competing Santa’s throwing bags of goodies on their sleigh for you.
They’ve been busy in their respective workshops ginning up some new and not-so-new gifts for you. A flat tax for Jimmy. An ad valorem refund for Maria. A constitutional amendment for Ruthie.
Santa’s elves are busy because the North Pole at SW 8th and Van Buren is awash in budget surpluses to the tune of — hold on to your pointy hat — $3.5 billion by fiscal year 2025!
Even removing $1 billion of one-time federal funds off the table, the remaining surplus and $1.7 billion rainy day fund makes tax cuts the most popular gift next legislative session since gold, frankincense, and myrrh made their debut.
So what are these potential tax cut floo-floobers and tah-tinkers waiting to slide down your chimney? Are they on your list? Is there a Grinch slithering under the tree?
The GOP workshop will be re-gifting a flat income tax again this year — a 5.15% income tax for all earners across the board. As constituted last session, 43% of the benefit would go to only 3% of the highest income earners.
Senate President Ty Masterson touted the economic viability of flat-tax states as “undebatable” even though the average ranking of those nine states (22nd) being lower than Kansas (20th) in GDP per capita makes it, well, kind of debatable.
Do we need a new Xbox when our current PlayStation works great?
They also want a cap on the growth of property values at 4% further hamstringing local government services making it feel as hollow as a Griswold family turkey.
Gov. Kelly’s workshop fashioned a $450/single or $900/married tax rebate last season. The business-side of state government has done very well under Kelly’s pro-growth and fiscally responsible policies, so why not share a dividend or bonus check with all its shareholders during good times to ease their inflationary pain?
No trickle-down here. It goes directly in all taxpayers’ stockings to spend/save as they see fit without risking structural changes to a tax structure doing very well (read: massive budget surplus).
But if you live in your inflationary fears, it will frighten you right out of your warm cozy socks Christmas morning.
Democrats have been tinkering the most. Their property tax relief theme combines three presents wrapped in a nice big bow.
First, a property tax rebate sent directly to property owners bypassing your local government’s slush fund temptations. Second, raising the exemption on property tax devoted to schools. Third, a constitutional amendment lowering the official tax assessment rate on residential property from 11.5% to 9%.
Of the three, a rebate via a resuscitated Local Ad Valorem Tax Relief Fund — a throwback to the days of wooden yo-yo’s, Lite Brite, and healthy state-local government relations — gets homeowners and landlords immediate relief; ensures property-tax dependent local budgets for roads, police, parks, schools, etc., are not compromised; and doesn’t risk “toying” with state tax structures ala Brownback style.
I thought about my list. Have you thought about yours? Now is the time. 2024 is an election year.
Your State Santas are working overtime on their new toys for you.
Make sure they don’t lose your own "Dear Santa" letter in the mail.
Bill Fiander is a teacher of university courses specializing in public administration and state/local government. He is the former planning and development director for the city of Topeka
This article originally appeared on Topeka Capital-Journal: Tax cuts and rebates at top of Kansas lawmakers' thoughts this season
