Tax cuts produced strong results
The Kansas Chamber of Commerce strives to improve the state’s economic climate and to make it more competitive for the benefit of every Kansas business and citizen.
The state legislature’s recent decision to raise income taxes by $1.2 billion will hurt every working Kansan and small business. It will damage the long-term trajectory of our state. It will pummel pocketbooks and discourage job creators. Additionally, the retroactive nature of these regressive taxes will cause a great deal of pain, crippling our state’s economy and putting us at a competitive disadvantage.
Kansans deserve to keep more of their own money. The 2012 income tax cuts did just that. Families had more in their pockets to pay off debt, save for their children’s college or invest in a new home. Business owners were able to reinvest their earnings into their enterprise and local communities.
Kansas saw strong results. Unemployment is down to 3.7%, the lowest in 16 years. The state set a record for new businesses every year since cutting income taxes. The small businesses the tax cuts targeted created 98% of new private sector jobs in our state. Despite these strong results, many blamed our budget challenges on these cuts, ignoring the substantial downturn in global agriculture and energy markets.
Refusing to acknowledge the data, legislators pledge to fix the perceived problem of the “small business tax cut.” But when the time came to cast their votes, they voted for broad-based tax increases on all Kansas workers. Kansas will now have a higher top marginal individual income tax rate than Massachusetts.
The Kansas Chamber believes there is a better way. Rather than increase the tax burden on every working Kansan and small business so state government spending may continue to increase, Kansas lawmakers should take the opportunity to find savings while still providing essential services. It won’t be easy.
The Kansas Chamber stands ready to support a pro-growth tax system that provides for future opportunity and prosperity for our state, its citizens and business community.