Nope it's the gear ratio being terrible..
5:1 is already a tough ratio with 11-13" wheels
from the rest of your "plan" I assume we talk more like 18-22" wheels in your case
frankly just saying you got 18" wheels
you are now geared for ~ 65 mph which you cannot reach
and thus you robbed yourself low end torque for absolutely no reason!
with 22" wheels you're geared for ~80mph which would be tough even with some serious mods.
If you want 40mph ish top speed
you want a 8:1 ratio on 18" wheels
and 9.7:1 ratio on 22"
you can get away with ~ 7.5:1 on 18" and ~ 9.2:1 on 22"
(roughly 44mph each)
assuming kart/rider combo doesn't weigh more than about 660 lbs
and the 6.5hp original engine is ungoverned and allowed to freely breathe (topping out at roughly 5500 rpms)
[no fancy cam needed! certainly no hefty valve springs... billet parts and mikuni are a good idea anyways [though not required]]
you gear ratio is so far off I wonder if the belt is still at least partly alive...
frankly I'd say you need a new one within the next 45min of ripping through the woods
'sid