P.O. Box 11415Shawnee Mission, KS 66207
March 6, 2013Representative McPhersonKansas State Capitol300 SW 10th Ave., Room 268WTopeka, Kansas 66612-1590Dear Representative McPherson:
We support HB2355, “The Kansas FairTax Act of 2013.”
Kansas’ best days are ahead of us. We have much to be thankful for and see tremendous potential for the Legislature toyet accomplish many good things for the citizens of Kansas.The process now in full swing in the Legislature provides a wonderful opportunity to create innovative ways to steerKansas toward economic freedom and greater prosperity. The budget is always a daunting challenge, especially in light of today’s economic uncertainty and unrelenting demands on the State government.The need for careful review and awareness of the State’s required expenditures is never-ending. That review is now inprocess, and we are hopefully confident that it will lead to further beneficial reductions in State expenses.We are fully aware that the major share of the State budget is dedicated to Education, Public Safety, and GovernmentOperations, all of which are virtually off the table, leaving only about 29% available for discretionary spending. This is thepresent dilemma as we now see it: What additional cuts can be made with such a small fraction remaining?Economic growth is the solution. Governor Brownback’s Pro Growth policy statement of February 2011 identified thatvery thing as the best solution for Kansas when he clearly and openly declared that Kansas needs
“… a more uniformbusiness tax policy that treats all businesses equally rather than the current set of rules and laws that give great benefit to a few (through heavily bureaucratic programs) and zero benefit to many”.
It makes perfect sense to continue with hisoriginal strongly-stated policy and wise vision, because it is still the one and only truly viable solution for Kansas.Kansas’ looming economic challenge is being addressed by several bills currently awaiting further action by theLegislature, and of particular importance are SB-78 and SB-79, commonly referred to in combination as “the Governor’sTax Bill(s),” and HB-2355, “The Kansas FairTax Act of 2013”.These two alternatives take significantly different approaches to creating accelerated economic growth for our State.
Both SB-78 and SB-79:
Surprisingly reverse the positive direction taken last year to reduce the amount of money collected by IncomeTaxes, and instead actually increase revenues derived from Income Taxes.b.
Remove a popular Income Tax deduction for home mortgage interest and property taxes.c.
Stretch out the timing of stepwise rate reductions in the Individual Income Tax.d.
Establish no specific end date for getting to zero for either the Individual or Corporate Income Tax.e.
Enhance and expand the so-called “Jobs Incentive” programs of HPIP, PEAK, IMACT, etc.f.
Complicate an already overly complex state tax system that requires the processing of millions of claims everyyear.g.
Leave great uncertainty with outside investors, who currently view Kansas as a poor place to invest.