Sales tax flip-floppers

Rep. Steve Brunk, R-Wichita, isn’t the only lawmaker in the awkward position of backing a statewide sales tax increase after having condemned a temporary sales tax increase in 2010. Gov. Sam Brownback is in the same flip-flop boat.

After the Legislature and then-Gov. Mark Parkinson approved a three-year sales tax increase to rebuild cash reserves and avoid major funding cuts to education, Brunk wrote a commentary condemning the action. He called it the “largest sales tax increase ever imposed on Kansas citizens” and argued that it would make Kansas uncompetitive with other states and would diminish “the road to economic recovery.”

But this week Brunk proposed increasing the statewide sales tax from 6.15 to 7.15 percent. Doing so would raise $426 million in revenue and give Kansas the second-highest sales tax in the nation. On Wednesday the House Tax Committee advanced a bill to increase the sales tax to 6.85 percent (while dropping the tax on food to 5.9 percent), to raise $271 million.

Many other lawmakers have changed their tune about sales taxes. In fact, Americans for Prosperity launched a mail campaign reminding lawmakers that they pledged to keep taxes low.

Brownback also is open to raising the sales tax, though he prefers to call it a “consumption tax.” When he first ran for governor in 2010, he condemned Parkinson’s temporary tax increase. But soon after he was elected he pushed to make it permanent. He eventually succeeded in resetting the 6.3 percent statewide sales tax at 6.15 percent, instead of allowing it to fall to 5.7 percent as scheduled.

Similarly, the Kansas Chamber of Commerce targeted for defeat lawmakers who voted for the temporary sales tax increase. But after the 2010 election, the chamber lobbied against repealing the tax increase. Now it is largely quiet about the proposals to increase the sales tax.

Brunk tried to justify his flip-flop by rewriting history. “The difference then was there was no real revenue shortfall. We were raising taxes so we could spend more money,” he said.

That’s not quite the case – nor does it address his previous contention that higher sales taxes make Kansas uncompetitive. Though general fund spending increased slightly in the 2011 fiscal year, it was to replace federal stimulus money and didn’t increase overall spending. What’s more, general fund spending has increased under Brownback – a fact that anti-tax groups regularly point out.

What is different then and now is the cause of the budget problems. In 2010, the nation was emerging from the worst economic collapse since the Great Depression. The current revenue shortfall is self-inflicted, caused by reckless tax cuts.

The other big difference is that, unlike in 2010, Brownback, Brunk and other conservative lawmakers don’t have the luxury of letting others do the difficult but necessary work of raising taxes and balancing the budget.

They are in charge. They caused the shortfall. And now they have to fix it.

For the editorial board, Phillip Brownlee

This story was originally published May 13, 2015 at 7:07 PM with the headline "Sales tax flip-floppers."