Governor Sam Brownback today issued the following statement regarding Senate Bill 30:
“I appreciate the efforts of legislators as they continue to work towards balancing the budget, building a school funding formula that puts students first, and ultimately closing out the 2017 legislative session.
“Given that this tax package was assembled and passed just today, I hope to avoid any unnecessary delays by announcing that I will veto Senate Bill 30, allowing the legislature sufficient time to address its many deficiencies and harmful impacts on Kansas families. We have worked hard in Kansas to move our tax policy to a pro-growth orientation. This bill undoes much of that progress. It will substantially damage job creation and leave our citizens poorer in the future.
“Earlier this year, I vetoed a tax increase that threatened to crush the Kansas economy, punishing individual Kansans and their families. Today, with Senate Bill 30, the legislature is looking to hike rates on Kansans even higher. Senate Bill 30 is a $1.2 billion tax hike, making it the largest in state history. This is bad for Kansas and bad for the many Kansans who would have more of their hard-earned money taken from them.
“Additionally, this tax increase is still retroactive and will affect individual families and small businesses in the 2017 tax year. Retroactively applying new taxes in the middle of the year is irresponsible and will harm families and individuals who are working to make ends meet.
“The people of Kansas deserve clarity in understanding how this bill will impact their families:
• Senate Bill 30 is the largest tax increase in state history.
• This bill hikes taxes $1.22 billion over two years, compared to the previously vetoed $1.04 billion tax hike in HB 2178.
• Low-income Kansans will be hit hardest because the low-income exclusion is cut in half.
• The bottom bracket marginal tax rate will increase by 14.8%.
• The middle bracket marginal tax rates will increase by 14.1%.
• The top bracket marginal tax rate will increase by 23.9%.
• Small businesses will lose their exemption for non-wage business income, instead paying up to 5.7% as they strive to create jobs and economic growth.
“Instead of imposing draconian tax increases on Kansas families, we must enact a pro-growth tax policy. Many alternative ideas have been discussed, and I believe there is a better solution. I have made many proposals, and several ideas have been considered by the legislature. We can and we must balance our budget without negatively harming Kansans.
“Once again, I remain committed to working with the legislature to develop a plan that balances our budget without permanently harming hard-working Kansans. Senate Bill 30 and its $1.2 billion tax hike is not the solution, and I will veto it for the sake of Kansas workers, Kansas families, and Kansas job creators.”