The Kansas Senate on Friday passed a bill to raise taxes to fill state budget holes, setting up a potential political showdown with Governor Sam Brownback.
The Republican-led Senate voted 22-18 in favor of the measure, which the Republican governor earlier this week belittled as a plan that would “pummel the pocketbook of middle-class families.”
The Senate vote followed House action on Thursday on legislation to raise individual income tax rates and to end a business tax exemption. The package was predicted to generate $590 million in fiscal 2018.
While opposed to the bill, Brownback did not indicate on Friday whether he intended to veto the legislation that undoes 2012 tax cuts he helped engineer that have made Kansas a petri dish of conservative economic theory.
The margin of passage in the Senate for the tax-hike legislation fell below the 27-vote threshold needed to override his veto, leaving the measure politically vulnerable.
"As with all legislation, Governor Brownback will review the bill closely once he receives it," his spokeswoman, Melika Willoughby, said in a statement.
Under the newly passed legislation, income tax rates would jump by 14 percent over existing levels for those earning between $30,000 and $100,000. For those with higher incomes, the tax increase would grow 18 percent over current rates.
In 2012, Brownback enacted legislation rolling back tax rates by as much as 29 percent in a move intended to improve Kansas’ business climate.
Since the tax cuts were enacted, state coffers have shrunk, causing Kansas to miss revenue targets. This month, S&P offered a pessimistic assessment on the state’s finances, revising the outlook on Kansas’ AA-minus credit rating to negative from stable, citing structural budget pressures.
Brownback's tax cuts also resulted in electoral upheaval. More than a dozen of his conservative allies in the legislature lost their seats in what was regarded as a political repudiation of his fiscal policies.
