Governor Sam Brownback, faced with mounting evidence that the debt in Kansas is not quickly to come to order, has been forced to seek new ways in which to help balance the state budget.
In his state of the state, Governor Brownback offered several proposals,including altering the school funding formula as well as a constitutional amendment that debt is paid first, moving Kansas to a first in, last out accounting method.
Today, in presenting the state budget, Governor Brownback laid out another part of the proposal - an increase in cigarette sin taxes, from 79 cents per pack to $2.29 per pack - a 190% increase on Kansas consumers. (Or 2.9X the current rate)
http://www.kwch.com/...
TOPEKA, Kan. (AP) - Kansas Gov. Sam Brownback has proposed raising tobacco and liquor taxes and slowing down future income tax cuts to help close projected budget shortfalls.
Brownback released a plan Friday to nearly triple the state's cigarette tax, to $2.29 a pack from 79 cents a pack.
Conservative think tanks, such as the Center for Policy Analysis (
http://www.ncpa.org/...) have previously argued that significant increases in sin taxes act as an economic deterrent while disproportionately impacting the middle and lower class consumer.
Kansas Republicans who hold super majorities in both the house and senate do not need any Democratic votes to pass legislation for the budget or for tax increases, however, they must be hopeful for some Democrats to jump on board, in order to avoid the stigma of this being a Republican Partisan tax increase proposal on the working poor.
Governor Brownback, who has called for a move toward more moral government has not released a statement as to the overall economic impact of such a drastic tax increase in a single turn.
The increase is expected to generate around $394M over a two year period, or slightly more than half of the current projected debt burden - around $770M prior to current school financing debate - that the state faces.
The budget will be the most significant ongoing debate in the statehouse this year, and discussion of revision and amendments may be pending.