There were 38,000 fewer Kansans working in May of this year, compared to January 2020. Business owners and individuals are being crushed by Washington’s spending-driven inflation. Yet Kansas Governor Laura Kelly is almost giddily inviting a recession, saying ‘bring it on.’
Fox News reports Kelly spoke to a local gathering of supporters today where she “not only acknowledged the possibility of a recession but had another message about a downturn in the U.S. economy and her state: “Bring it on.”
Kelly says the state is prepared for a recession, having a large General Fund surplus and $989 million more in a rainy day fund. So state government may be in a position to weather a recession, but most taxpayers and business owners are not.
In addition to job loss and inflation, Kansans are also paying some of the highest tax rates in the nation.
- The top marginal income tax rate of 5.7% is higher than 28 states.
- Kansas has the highest effective tax rate on mature businesses.
- The combined state and local sales tax rate is the ninth-highest in the nation.
Kansans pay some of the highest effective property tax rates in the nation, and some local officials seem hell-bent on making it worse. Overland Park officials are promoting another 10% hike this year.
It’s good that Kansas has a rainy day fund and other reserves to weather a recession, but let’s not forget that a good portion of those reserves results from excessively high taxes.
Instead of ‘bring it on’ about a recession, Kelly should be saying ‘bring it on’ to personal and corporate income tax cuts.