Gov. Brownback proposes tax increases to balance budget

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WICHITA, Kan.(KWCH) Governor Sam Brownback made some proposals Wednesday to fix the state's budget. Included are some tax increases.

He wants to increase the liquor enforcement tax, the cigarette tax and the tobacco tax.

Liquor and tobacco shop owners in Kansas will likely agree with Tom Jacob who owns Jacob Liquor Exchange.

He's frustrated with the governor's proposal to increase the liquor enforcement tax from eight percent to 16 percent.

"That's a pretty big increase, said Jacob. "You can't double it and think you're going to gain that much money that you're proposing to gain."

Jacob is confident his sales will go down and Kansas will turn to other states, especially in areas like Kansas City, to buy their liquor.

"As people find other outlets for the products, they will go to them. There's so much online selling taking place right now, it's affecting everybody's business," said Jacob.

We caught up with Wayne Hemmen who was buying some alcohol. He agrees with Jacob.

"Why wouldn't you go over to Oklahoma or some place and get it cheaper?" said Hemmen.

That's more of a worry for Jacob's tobacco business.

Brownback wants to increase the cigarette tax by $1 and double the tobacco tax from 10 percent to 20 percent.

Jacob says his biggest competitor is online companies that currently sidestep Kansas tobacco taxes.

"We can't compete now. We try to, but it's very tough," said Jacob.

These proposed taxes are just one part of Brownback's plan to balance the state's budget, something Hemmen agrees needs to be done, but just disagrees on how.

"We've got some serious tax problems, but he needs to get working on the problem he created and not up these other taxes you talked about," said Hemmen.