It's been said the only sure things in life are death and taxes. Death we can't argue with. But taxes appear to be a matter of who you know -- or how much influence you wield.

With the state staring at a minimum $467 million deficit for the next fiscal year, current tax exemptions are receiving a closer look by the Legislature. Kansas Revenue Secretary Joan Wagnon recently pointed out such exemptions cost the state $4.36 billion in 2010 alone. The number of specific exemptions has tripled between 1985 and 2009.

Who benefits? Companies, individuals, churches, nonprofit organizations, entire industries and the state itself. The 96 current exemptions in place include, but are not limited to, sales tax exemptions for:

* Drill bits and explosives used in the exploration and production of oil or gas.

* Meals served without charge to employees if duties include furnishing or sale of such meals or drinks.

* Property purchased by railroad or public utility for use in the movement of interstate commerce.

* Coin-operated laundry services.

* Sales for prescription drugs.

* Admission to any cultural or historical event that occurs triennially.

* Sales of animals, fowl, aquatic plants and animals used in agriculture or aquaculture, for production of food for human consumption, the production of animal, dairy, poultry or aquatic products, fiber or fur or the production of offspring.

* Service of renting of rooms by holds or accommodation brokers to federal government or any federal employee in performance of official government duties.

* Lottery tickets and shares made as part of a lottery operated by the state of Kansas.

* Property and services purchased by Jazz in the Woods and sales made by or on behalf of such organization.

* Property purchased by the American Heart Association, Kansas Alliance for the Mentally Ill, Kansas Mental Illness Awareness Council, Heartstrings Community Foundation, Cystic Fibrosis, Spina Bifida Association, Cross-Lines Cooperative Council, Dreams Work, KSDS, Lyme Association of Grater (sic) Kansas City, Dream Factory, Ottawa Suzuki Strings, Lions Clubs, Johnson County Young Matrons, American Cancer Society, Community Services of Shawnee, Angel Babies Association and the Kansas Fairground Foundation.

The list goes on and on. For fiscal year 2011, the 96 exemptions will result in the state not receiving $4.52 billion. And remember, the deficit lawmakers face is only one-tenth of that amount.

State legislators are beginning to examine the possibilities. One suggestion that has passed out of a House committee would raise $170 million by reinstating sales tax on residential water, electric and natural gas bills as well as on churches for the goods they purchase.

While we would not advocate starting the process by targeting individual Kansans, it is at least a step in the right direction. But what legislators really should do is eliminate every single exemption. Immediately. After all, every person or entity not on the exemption list picks up the slack for those with enough clout to avoid paying their taxes.

That does not even closely resemble a free market. Instead, the state decides who wins and who loses. Why should Lions be treated differently than Kiwanis? Does the Ottawa Suzuki Strings group accomplish more economic development than the Western Strings Academy? What do the Johnson County Young Matrons do that other volunteer groups don't do more of? Are dry cleaners discriminated against in favor of coin operated laundry services? There are more questions posed by the existence of the current exemptions than there are exemptions.

Eliminating all the exemptions would allow the state to close its budget gap, create a rainy day fund, restore funding to schools and universities and finish renovating the Capitol -- all in one fell swoop. That would be a result most Kansans would favor.

Editorial by Patrick Lowry

plowry@dailynews.net