As the tax reform debate begins to heat up, businesses and investors are beginning to pay closer attention to the House GOP Tax Reform Blueprint, a tax plan released last June by Speaker Paul Ryan and House Ways and...
- The Tax Policy Blog
- Kansas Legislators Review Tax Cut Estimates
Kansas Legislators Review Tax Cut Estimates
The Kansas City Star reports that legislators are reacting cautiously to plans to cut Kansas's income tax after analysts have revised the estimated revenue loss through 2018 from $900 million to just $160 million. The change came from increasing projected sales tax growth from 3.75% a year to 4% a year.
The plan would take effect part way through the 2013 budget year:
*For singles. Married couples have twice the bracket amount.
From the Kansas City Star:
The new estimate "could definitely be too rosy," said Sen. Tom Holland, a Baldwin City Democrat who serves on the conference committee trying to hammer out a compromise tax plan.
"I think we need to slow the process down and understand what's behind these numbers," Holland said. "Let's do some additional analysis and let's see what they really mean."
The plan would eliminate some tax credits and deductions, but would keep the mortgage interest and charitable contribution deductions, as well as a low-income credit. Governor Sam Brownback (R), who proposed the tax cut in January, had recommended for much of the rate cut with eliminating deductions, but that part has been pared back after opposition.
So instead of giving Kansans the choice of their mortgage deduction against a 6.45% tax, or a flat 4.9% tax, Kansans will get both or neither, depending on the revenue picture. That may be a tough sell.
Get Email Updates from the Tax Foundation
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.
Related State Articles
- Lunch Links: Trump and Clinton Campaigns Leave Lots to the Imagination on Taxes; Bipartisan Support for Fairer, Simpler Tax Code; Why Supporters of a Carbon Tax Oppose Its Passage on Washington Ballot
- Lunch Links: Clinton Holds Back Details on Business Tax Plan; Leading Economists Sign Letter of Opposition to Trump; Los Angeles Weighs Separate Marijuana Taxes from Statewide Proposition; Kansas Once Again Misses Revenue Projection
- Lunch Links: Debating Small, Progressive Taxes vs. Larger, Less Progressive; More Blowback on Brownback's Kansas Tax Policy; Plea Agreement Reached by Tax Court Judge
- 1 of 26
- next ›