Bryan Lowry, reporter for the Wichita Eagle, effectively summed up the situation in the Kansas State Capital today with a simple tweet:
What exactly led to this set of circumstances? The Kansas Legislature, currently working overtime in Topeka remains locked in a struggle over budgets. Republicans began their Sunday - after an immediate recess - with caucus meetings designed to inform their members of the current plans.
While house members focused on issues they would take on today as well as issues over tax on food, the Senate caucus heard from Sam Brownback's advisers as to the realities of the current budget. Noting to the senate that without a budget, state employees would be furloughed and their benefits would face suspension starting June 7, the pressure was high on Senators to create a budget that would pass and get to the governor's desk quickly.
Governor Brownback, however, had sent word through to the senate that he had one provision: any tax increase on businesses or roll back on his 2012 tax plan would face an immediate veto, and it would be the legislature who would be responsible for the outcome.
In light of this, Sen. Abrams, (R-Ark City) introduced his updated proposal to match the governor's request. The Abrams proposal would provide for an increase of state sales tax to 6.65% and a removal of exemptions from the state sales tax.
This removal of exemption would take organizations that currently do not pay sales tax due to their classed status, and require them to pay sales tax to the state. When questioned in the Republican caucus, this would in effect mean hospitals, long term care providers (nursing homes), schools, city and county governments would all be required to pay sales tax on items consumed for their purpose, or to collect sales tax in the case of non-for-profits that used sales as a means to raise revenue.
The Abrams proposal, which would eliminate the number of exemptions was seen as a way to collect money while allowing for the next component: a further lowing of income taxes.
As a result, Kansas Republicans are working on Sunday for legislation that would require your local Girl Scout troop to figure out destination based sales tax - as tax in Kansas is always charged at the area it is delivered and sold in - while any consideration of increases in corporate taxes face an immediate veto from the governor, whether or not that veto forces thousands of state employees out of work.
7:00 PM PT: Update from Senate Floor
Democrats have pointed out that this change in tax policy would blindside local charities, non-for-profit hospitals & care providers and schools.
Republican Abrams (Ark City) has pointed out this "gets them home" quickest, solves the issue right now, and besides - all hospitals do charity since they have to take people in through the emergency room anyway.
8:28 PM PT: Live Tweets/Updates
We're still ongoing at 10:30 at night on a Sunday, as they are debating taxes and it's going zany. Feel free to follow at #ksleg or my handle, @tmservo433
11:26 PM PT: Abrams Plan Goes Down in Flames
The Abrams tax plan went down in flames, 30-9. It's now 1:30AM CST, and the Senate is currently in caucus to see if they can roll out another bill on taxes. They are thinking they will be there til 4AM. Please note: this is not a governmental body stacked with young people.