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State Finances May Benefit If "Fiscal Cliff" Negotiations Fail

2013 fed_budget

TOPEKA, Kan. (AP) — Kansas officials acknowledge that the state could gain some revenues if the federal government goes over the "fiscal cliff," but they say the boost isn't likely to come close to offsetting any potential problems. The state's income tax codes are largely tied to the federal tax codes. If President Obama and Congress can't reach an agreement to avoid automatic tax increases and spending cuts, some tax changes will result in Kansans paying more in taxes to the state. Republican Governor Sam Brownback's administration had no firm revenue estimates Tuesday. Spokeswoman Sherriene  Jones-Sontag said the administration is not preparing for a boost in tax revenues. State Senator and Topeka Democrat Laura Kelly said economic problems caused by going off the fiscal cliff outweigh any revenue boost.

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