Issue Position: Future Tax Policy --- Do No Harm

Issue Position

The state budget was upside down after governor Brownback's 2012 tax plan went into effect, dramatically lowering income to the State General Fund by about $900 Million per year for five years. The State survived financially only by using-up every dollar in the state savings account, by raiding other funds to shore up the general fund and by borrowing on next year's income, taking $1Million per day from the State Highway Fund and cancelling highway projects which were promised to every county in the state when we passed the highway plan.

I support a fair and balanced revenue policy that derives its funds from three major sources; income, sales and property ownership. These three sources ensure that everyone who benefits from the services of the state are paying a fair share of the costs.

The state tax on sales is 6.5%. When this is added to local sales taxes some areas, including Manhattan, residents are paying close to 10% of all purchases. Sales tax is the quickest source of revenue in times of economic stress and the easiest to change when conditions warrant. I believe it would benefit the citizens and the economy to reduce the state sales tax at the first opportunity. Doing this would automatically reduce the tax on food and expensive purchases such as appliances and vehicles and alleviate stress on family budgets. It would also give our businesses a boost, especially those near state borders.

The U.S. Supreme Court decided in the South Dakota internet sales tax decision that states could collect sales tax on internet purchases, but there remains some question whether Congress will put legislation in place to prevent it, even though it would boost state incomes by about $100 million/year or more. That would certainly help to stabilize state finances. Until the dust settles on state revenue and the new Federal Income Tax law, I will strive for a "Do No Harm" position. This is not the time to make more changes in tax policy.

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