I want to thank all of you who have contacted me after my vote on final action of HB 2178 (tax bill). As usual, I've received a mixed bag of responses. My votes effect you, and I take that responsibility seriously before casting them. You elected me to take the tough votes as well as the easy ones.
After reviewing HB 2178 and listening to past dialogue from many of you, I made the decision to support the bill. Let me share some factors that influenced my decision to support this bill:
I serve on the Tax Committee and we reviewed four tax plans in Committee. One did not make it out of Committee, one did not get a motion to advance it out of Tax Committee, one moved out of Committee but failed to make it on the Senate floor due to lack of votes and support, and the remaining one was voted down on the Senate floor. Needed votes were not there to move these tax bills on. The House passed HB 2178 with a clean bipartisan vote (76-49). On Friday, the Senate was able to vote on this bill. No amendments were offered. At this point, and after further study of the bill's content, I assessed this to be the best tax plan with enough support to get passed "in this lifetime."
What I didn't like about the bill:
- It is retroactive to January 1st 2017
- It is an income tax increase occurring during an economic slump, especially for the agriculture and oil industry.
What I did like about HB 2178:
- It fixes the business exemption
- Eliminates tax on losses
- Broad base tax plan adding a third bracket with the lowest tax rate in the third bracket than any of the other third bracket plans.
- Reinstates medical deductions
- No increase in tobacco tax
- No increase in liquor tax
- No property or sale's tax increase
- Open the door to possible food sales tax reduction
- Potential to stabilize the Budget
In the end HB 2178 rendered enough votes in both chambers to pass. Is this a perfect tax plan? No! But I feel it is a start to fix the budget shortfall the State is experiencing. As we continue the budget process, considerations for cuts may still be on the table as a revenue generator. The numbers will determine this need.
This tax bill is now on Governor Brownback's desk. It's fate is in his hands. The people of Kansas deserve a long term budget fix. HB 2178 may just help us get there.
Thank you for reading my explanation of vote.
Dan
