Jane Deterding: Financial stability requires a tax increase

This question makes me think of one of my father’s many sayings about the banking business and business in general.

On this one, I’m sure he’d tell the governor that he failed to remember rule No. 1: the “come-in-ski” must be greater than the “go-out-ski.”

This pithy saying would usually be followed by words of encouragement like, “It’s a simple business … ”

In my opinion the current situation was created by a critical overestimation of state revenues by the Brownback administration. His “tax relief equals reinvestment” plan did not consider the possibility that small business owners would not create new jobs where the work wasn’t there to warrant it.

This being the case, Brownback is left with the unpopular task of making cuts to the already lean budget or finding viable ways to increase state revenue in the short term.

The revenue side must be fixed, which is the only way to improve the state’s bond ratings, too. No one likes to suggest an increase in taxes, but short of a benefactor like Warren Buffett “buying” Kansas, we’re left with no other alternatives.

This story was originally published November 27, 2014 at 3:12 PM with the headline "Jane Deterding: Financial stability requires a tax increase."