Despite the fact that Kansas has been receiving more tax revenue than what was initially estimated by economists, there are still politicians who are advocating for tax cuts.
In a news release on Monday, Governor Laura Kelly shared that the Kansas Department of Revenue had collected $42 million more in taxes than projected, contributing to the state’s impressive revenue growth in September.
According to figures from the Kansas Division of the Budget, the total amount of taxes collected in the first quarter of the fiscal year exceeded the estimated amount by $31 million. The month of July performed better than expected, while August fell short of expectations. These results bring the total tax revenue collected for the first three months of the fiscal year to a higher-than-expected amount. You can find more information about these figures in the Kansas Division of the Budget report.
According to a recent report by the Kansas Legislative Research Department, the state is expected to have a budget surplus of approximately $2.7 billion for the current fiscal year, which will end in June. Additionally, there is an additional $1.7 billion in reserve in the rainy day fund. The same report also indicates that the budget surplus is projected to increase to $3.2 billion by June 30, 2025.
In a statement, Kelly expressed her pride in the work her administration has done to stabilize the state’s finances, which has allowed for significant investments in education, infrastructure, and public safety. She emphasized that the time has come to provide relief to Kansas residents through well-considered tax cuts.
The Legislature, under GOP leadership, and the Democratic governor faced pressure from both sides to implement tax cuts during the last legislative session. However, despite the bipartisan calls, they failed to come up with a consensus on the approach to be taken.
Two separate tax cut proposals were presented by Republicans, one of which was a flat tax and the other was a tax break for Genesis Health Clubs. Both proposals were bundled together, and Kansas Governor, Kelly, vetoed both of them. The Republican supermajorities were unable to override the vetoes, resulting in Kansans being left without any significant tax relief. The veto of the flat income tax plan was expected to kill the entire tax cut bundle. In addition, Kelly also vetoed tax breaks for anti-abortion donors of Genesis Kansas, making it impossible for Kansans to receive any form of tax relief.
Kansas House Speaker, Dan Hawkins, and Senate President, Ty Masters, both Republicans, have launched a statewide campaign to advocate for tax cuts in the upcoming legislative session. Their primary focus is to replace Kansas’ current progressive income tax brackets with a single rate, commonly referred to as a flat tax. This move has the potential to significantly lower taxes for many Kansans. A recent article in CJ Online highlights the threat of a veto from Kansas Governor, Laura Kelly, who has voiced her opposition to such a proposal.
According to reports, Kelly has expressed her opposition towards a flat tax. However, she has also put forth various other alternatives for reducing taxes. In fact, she has proposed numerous tax cuts besides a flat tax, as per a report.
During the previous session, the proposal to lower property, grocery, and retirement taxes was put forward. The aim was to provide relief to families without hindering the state’s economic growth and the ability to invest in essential areas. The speaker reiterated the importance of getting this plan executed in the upcoming session.
According to Hawkins, Kelly is responsible for the absence of tax cuts.
In his newsletter on Friday, he emphasized how much Kansans require tax relief at the moment. He pointed out the significant amount of state taxpayer money that Governor Kelly has been holding onto after canceling the tax relief earlier this year. Nowadays, it seems like everyone is attempting to access these funds to expand big government programs.
According to his statement, the Republicans are against utilizing the surplus revenues for various purposes, including the expansion of Medicaid, funding local property tax cuts, and financing child care programs.
Hawkins, a House Republican, believes that expanding big government programs is not the solution to issues that can be resolved more efficiently within the free market. He is determined to keep a close eye on ensuring that the funds are returned to the taxpayer’s pockets, despite the Kelly/Toland Administration and their associates’ efforts to get their hands on them. Rest assured that he and his colleagues are closely monitoring the situation.
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