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Governor: Lawmakers should keep working on taxes

TOPEKA – Gov. Sam Brownback says Kansas legislators should keep working on tax issues even though they’ve already sent him a bill reducing income and sales taxes.

The Governor released this statement this afternoon to the statewide news media

“As with all bills approved by the Kansas Legislature, I will carefully review and consider HB 2117. It would create tens of thousands of new jobs, and combined with spending restraint, will help to reverse a lost decade of declining employment.

“I am prepared to sign the bill but I encourage Kansas Legislators to continue their work on reforming our state’s tax policy and to consider some of the alternatives I proposed in my original pro-growth tax reform to off-set the cost.

“It is important to recognize that the debate in Kansas has changed from how we grow state government to about how we grow the state’s economy. After a decade of lost jobs and people, Kansas is now on the path of economic growth and job creation.”

The measure cleared the House Wednesday on a 64-59 vote, and Brownback says he’s prepared to sign it. The Senate had approved it earlier, though many members didn’t like much of it and worried it could create budget problems.

The bill reduces individual income tax rates, eliminates income taxes for 191,000 businesses and lowers the 6.3 percent sales tax to 5.7 percent in July 2013.

But the Legislature’s staff has predicted the cuts will create a budget shortfall that could exceed $2.7 billion by July 2017.

The House’s action prevented the Senate from voting on a less aggressive alternative.

*The Associated Press contributed to this report

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