Legislative session passes 90 days
The legislature has passed the 90th day of the session, and neither the House nor the Senate have come to an agreement on how to fill the state’s budget deficit. Gov. Brownback and Republican leadership in both chambers have taken passive roles in the process, and as a result the session will continue into next week. Every day the legislature is in session passed the 90th day cost the state more than $40,000.
Tax plan rejected by House
The House focused most of its attention this week on revenue proposals to fill the state’s budget shortfall caused by the governor’s irresponsible tax plan. The House Tax Committee explored several options for generating revenue including:
• Raising taxes on cigarettes from $0.79 to $1.54 a pack
• Enacting a 2.7 percent to 4.6 percent tax on businesses
• Increasing the gas tax from $0.24 to $0.29 a gallon
• Increasing sales tax to 7.15 percent.
Ultimately the House committee passed a bill that raises more than $1 billion over the three years by:
• Reducing sales tax on groceries from 6.15 percent to 5.90 percent, and raising taxes on all other sales to 6.85 percent.
• Eliminating or reducing nearly all of the state’s eligible itemized tax deductions.
• Enacting a 45 day tax amnesty period, where individuals can pay back taxes without penalties.
• Dropping the bottom tax bracket’s income tax rate from 2.70 percent to 2.55 percent.
The proposal came to the House floor on Friday, where it was quickly defeated by members of both parties. I opposed the tax plan because it cobbles together indiscriminate and regressive tax increases to subsidize the governor’s failed economic experiment.
The House Tax Committee will go back to the drawing board on Monday, and is likely to reconsider some of the taxes they have previously passed over. As the process moves forward, I will consider proposals that are responsible, equitable, and sustainable and puts the needs of middle classes and working families first.
No progress on the budget
There has not been any additional progress on the budget this week, as lawmakers are waiting on a revenue package to pass before taking further action. The state cannot spend more than it takes in, so if the legislature passes a tax plan that does not fully fund the budget as proposed, there will have to be cuts.