Is the Kansas Tax ‘Solution’ Best for Oklahoma?
Kansas tax cuts raise budget concerns
BY RANDY KREHBIEL World Staff Writer
Monday, March 04, 2013
Last year, Kansas did what Oklahoma talked about. It slashed personal income tax rates, from a top bracket of 6.45 percent to 4.9 percent, and eliminated income taxes altogether for nearly 200,000 farms and businesses.
Kansas’ bold step was part of a broader attack against the income tax. At best, it is described as an impediment to economic growth. At worst, the income tax is seen as an outright evil that penalizes financial success and enterprise.
Ultimately, proponents argue, lower tax rates lead to more economic activity and more efficient government.
For Kansas, the immediate result of income tax reform has been a $700 million hit to a $6 billion general fund, which projects out to a revenue loss of $2.5 billion through 2018. In January, Bloomberg reported Kansas’ uncertain budget outlook had hurt its standing in the bond markets.