Kansas simply can’t afford Legislature’s misguided tax policy | Commentary

As it emerges from a once-in-a-century pandemic, Kansas faces an all-too-familiar threat: misguided tax policy.

Senate Bill 50 would reduce revenue over the next three years by $284 million. To make matters worse, legislators have so far failed to close a federal Paycheck Protection Program loophole that would cost a whopping $360 million.

The state stands to lose some $644 million over the next few years from these two pieces.

Gov. Laura Kelly rightfully vetoed the bill, which Kansas simply can’t afford if we’re to continue making critical investments that help families, businesses and communities thrive. When lawmakers return to Topeka tomorrow, they should vote no on overriding the governor’s veto.

Reduced revenue will lead to cuts in the infrastructure that powers our state like child care, schools, roads, broadband and the state workforce. Students, teachers, small businesses and those enrolled in state services will bear the brunt.

SB 50 hands out generous tax breaks to big corporations and high-income earners. While it also increases the standard deduction and ensures the state can collect sales taxes online, these components are tacked onto a bill primarily benefiting those who made out best during the past year. It’s not targeted at the Kansas front-line workers and communities that sacrificed the most during the pandemic.

But that’s not the only problem.

Federal law makes clear that aid from the American Rescue Plan can’t be used to offset tax cuts. The law doesn’t prevent Kansas lawmakers from using state dollars to pay for tax cuts — but they would have to return the equivalent amount of federal aid.

States across the country are waiting for more guidance from the Treasury. But the law reads plainly enough. Are Kansas lawmakers so committed to reducing revenue they’re willing to do it twice? Once by passing SB 50 and then by essentially rejecting millions upon millions of dollars in federal aid?

And why would they do that when Kansas faces big challenges? Even before the pandemic, many in our state were struggling.

Last year, the state released a comprehensive needs assessment that describes the early childhood care and education system in Kansas. Information was collected from all Kansas counties and more than 6,000 Kansans.

This unprecedented research effort yielded two central findings, one of which was: “Too many young Kansas children grow up in families where basic needs are not met. The struggle to meet basic needs such as food, housing, and health care prevents families from fully meeting their child’s developmental needs.”

Without meaningful intervention from lawmakers, we expect to see these problems get worse. As if this weren’t enough, the pandemic has created incredible social and economic disruption, especially for women and communities of color. We must focus on these families and their challenges. Not blowing a hole in the state budget.

Under former Gov. Sam Brownback, we saw what happened to a state that put ideology ahead of commonsense tax policy. We can’t afford to make these mistakes again.

Think about what $644 million could do to help our state. Think of what we could build together. Lawmakers should sustain the governor’s veto and get to work on making the future of Kansas bright.