Jan 16, 2025

Balancing Tax Relief and Responsibility

Posted Jan 16, 2025 1:50 AM

By Alexandra Middlewood

If you’ve been to the grocery store since the new year you may have noticed that state sales tax on grocery items dropped to 0%.

In 2022, the Kansas Legislature passed a bill that gradually eliminated the sales tax on groceries, with final elimination on January 1, 2025.

To many, tax cuts represent a meaningful win for Kansas, but it also brings with it tough questions about the future of state revenue and services.

According to the 2022 legislation, State General Funds will take a $437.1 million hit this year and $526.2 million hit in 2026 due to the sales tax elimination.

This dilemma highlights the complexities of reducing taxes.

Most Kansans will celebrate the lessened burden on their bank accounts after visiting the grocery store, but in the same breath expect the same level of government services.

Our state is familiar with this dilemma after Governor Brownback’s deep income tax cuts in 2012 and 2013 — widely known as the “Kansas experiment”.

To be clear, there are important differences between Brownback’s income tax cuts, which primarily benefited the wealthiest Kansans, and eliminating sales tax on food, which spreads the benefits more equitably among Kansans. But the same dilemma remains.

Government services don’t exist in a vacuum. They cost money, and usually are paid for through tax revenue.

To add to this dilemma, the state legislature passed a tax reduction bill in 2024 that is expected to cut about $1.2 billion over three years from income and property taxes, and many state legislators have said that further property tax cuts are a top priority for the 2025 legislative session.

While on the surface, tax cuts seem to be a boon for Kansas families, the potential reduction in state revenue raises the question: what sacrifices might be required to maintain essential government services? Will this lead to cuts in education funding, infrastructure projects, or public safety budgets?

Lessons from the past, such as the “Kansas experiment”, remind us of the major risks that come from enacting tax cuts without a sustainable plan. Under Brownback’s cuts, the state’s revenues plummeted and led to major cuts to education, infrastructure, and other vital services.

Kansans have a lot to gain from the elimination of the grocery sales tax and other tax cuts, but they also have a lot to lose if the state’s financial future is not managed responsibly. The reality is clear: every dollar saved via tax cuts is a dollar no longer available to fund schools, roads, public safety, and healthcare. The question isn’t whether these tax cuts are beneficial in the short term — most Kansans would agree they are — but whether the state has a plan to sustain the services that keep our communities strong.

As we move forward, we must learn from the past. The Brownback tax experiment serves as a cautionary tale, reminding us that poorly planned tax policies can do more harm than good. Kansans deserve transparency and accountability from their leaders about how these cuts will impact the state budget and the quality of life for all residents.

The elimination of the grocery sales tax offers relief, but it also requires vigilance. Kansans should demand a balanced approach — one that ensures tax relief without sacrificing the future of our state.

The choices we make today will shape the Kansas of tomorrow. Will we build a future that prioritizes short-term gains at the expense of long-term stability? Or will we find a path that balances relief with responsibility? The answer is up to all of us.

The success of these policies depends on the willingness of citizens, policymakers, and leaders to come together, ask tough questions, and make informed decisions to ensure Kansas continues to thrive.

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Alexandra Middlewood, PhD is an associate professor and chair of the Political Science Department at Wichita State University.