Can’t blame all of revenue drop on capital gains

taxrevenueFormer state budget director Duane Goossen raised more doubts about the Brownback administration’s claim that federal tax policies caused the state to miss its revenue estimates by $338 million during the past three months. Even if $3 billion in capital gains income was shifted from the 2013 tax year to 2012 (which Goossen points out is highly improbable, as $3 billion would be the entire amount of capital gains income for Kansans in an average year), at most that might have resulted in a reduction of $147 million in state income tax collections in fiscal year 2014 (assuming that the entire amount was taxed at the highest rate). That’s less than half as much as the estimates were off. All total, Kansas collected $726 million less in tax revenue in the fiscal year that ended June 30. That’s more than the tax drop during the entire Great Recession, Goossen noted, when revenue fell $618 million during a three-year period.