More bad news for Kansas Governor Sam Brownback. In a stunning development, over 100 current and former Republicans endorsed Brownback’s Democratic challenger, Congressman Paul Davis. The group “Republicans for Kansas Values” includes state legislators, mayors and RNC delegates, among others. Dick Bond, former president of the Kansas state Senate, said “The decision to endorse a Democratic candidate for governor is a big step for all of us and a major departure from our Republican roots. We do not make this decision lightly. But this election should not be about electing a Republican or a Democrat as Governor. It must be about electing a moderate, commonsense Kansan as governor." The group opposes Brownback’s reelection for a number of reasons, including the deep tax cuts he spearheaded.
On Wednesday, the North Carolina Senate Finance Committee voted to cap county sales tax rates at 2.5 percent. If enacted, the proposal will prohibit Mecklenburg County (home of Charlotte) from moving forward with a planned November referendum to raise the county sales tax by 0.25 percent (the county already levies a 2.5% local sales tax). The additional revenue would help the county pay for teacher raises. The move comes at a time when the state is struggling to address a budget deficit and pay for teacher raises due to deep tax cuts passed last year.
The Wall Street Journal reports that states have become more reliant on federal funds for infrastructure spending because they divert gas tax revenue away from roads and toward other uses. Some states, like Texas and Kansas, use gas tax revenue to fund education and healthcare programs. Others, like New Jersey and Washington, use revenues to service debt incurred by existing infrastructure projects. Congress recently approved a stop-gap measure to keep the Highway Trust Fund from running out of money until May 2015.
Finally, a bill recently passed by the House of Representatives banning states from taxing internet access could cost New Mexico $44 million in tax revenue, according to The Center on Budget and Policy Priorities. Under current state law, New Mexico’s gross receipts tax affects both goods and services – including internet service. New Mexico is one of seven states that currently taxes internet access.