TOPEKA - In response to growing criticism over Gov. Brownback’s plan to cut Kansas income taxes, House Republicans have unveiled an alternate proposal to accomplish the Governor’s goal using a different approach.
In order to pay for their tax plan, the House GOP plan will adjust the percentage of general sales taxes that are sent to the Department of Transportation, essentially cutting $300 million from the Highway Fund over the next two years (and perhaps more money over a longer period of time). The Highway Fund is the revenue source for the comprehensive transportation plan that was signed into law in 2010, which was projected to create 175,000 new jobs and generate $6.4 billion to our state’s economy over the next ten years.
“The transportation plan that passed the House in 2010 is the largest jobs package in Kansas history,” said House Democratic Leader Paul Davis, Lawrence. “It is wrong for House Republicans to propose eliminating those jobs at a time when over 50,000 Kansans are desperate to find work.”
Three different economic studies have confirmed that the comprehensive transportation plan is an exceptional economic development package, providing incentives for business and jobs for Kansans. After the Legislature approved the transportation plan in 2010, Southern Business & Development magazine’s annual “Top Deals and Hot Markets” report ranked Kansas at number three, which was the state’s highest finish ever in the survey. Pollina Corporate named Kansas as a “Top 10 Pro-Business State”, in part because of our commitment to building a strong transportation system. CNBC’s annual America’s Top States for Business report ranked Kansas at number 11, also in part due to the state’s transportation system.
“The devil is in the details when it comes to tax reform,” said Davis. “Gov. Brownback’s tax plan increases taxes on the poor by 5,102 percent. The House Republicans’ tax plan eliminates thousands of transportation jobs for middle class families. Both plans make the gap between the rich and the middle class wider. We can do better.”
# # #