TOPEKA, Kan. (AP) – Kansas officials are blaming changes in federal tax policies for lower-than-expected state revenue collections in April.
The Department of Revenue reported Wednesday the state’s April collections were $92 million less than analysts had forecast less than two weeks ago. More than $89 million of the shortfall was in individual income taxes related to federal changes in calculating capital gains on investments and other income.
Revenue Secretary Nick Jordan blamed President Barack Obama’s administration and changes made to the federal tax code that expired on Jan. 1, 2013.
Jordan says other states have seen similar declines in revenue collections, including Michigan which saw revenues drop 42.6 percent.
The April totals were announced as legislators returned to Topeka to finish work on the state budget and other issues.
Governor Brownback’s statement on revenue report:
“What we are seeing today is the effect of tax increases implemented by the Obama administration that resulted in lower income tax payments and a depressed business environment.
“Many taxpayers took advantage of capital gains and other income in the 2012 tax year to take advantage of favorable tax rates set to expire Jan. 1, 2013. The failed economic policies of the Obama administration are affecting states throughout the nation. It is more important than ever that we continue our focus on growing jobs and creating a business-friendly environment that benefits Kansans.
“Our pro-growth economic policies have resulted in one of the lowest unemployment rates in the nation and the creation of more than 50,000 new jobs since January 2011.”