Closing the state’s revenue shortfall with a 1% increase in the retail sales tax would be better for the Kansas economy than cutting the budget by an equivalent amount, according to a new study from Wichita State University’s Center for Urban Studies and Kansas Public Finance Center.

A 1% increase in the sales tax would generate $350 million a year, but could reduce the state’s economic output by $363 million and cut jobs by 3,231.

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