Kansas House Unanimously Passes Dual-Rate Income Tax Plan
Kansas House Unanimously Adopts Dual-Rate Income Tax as GOP Ditches Flat Tax. (PHOTO: State Affairs)
Key Provisions of the Compromise Tax Plan
According to The Kansas City Star, in a rare demonstration of bipartisan cooperation, the Kansas House of Representatives unanimously approved a dual-rate income tax plan on Wednesday, marking a significant departure from nearly two years of intense partisan conflict over the state’s tax policy. Last week, Republican leaders in the Kansas House pivoted from their longstanding advocacy for a single-rate income tax acknowledging the insurmountable opposition it faced from Democratic Governor Laura Kelly and her allies in the Legislature. The new plan crafted as a compromise includes provisions such as reducing the lowest tax bracket to zero, cutting state property taxes, eliminating taxes on social security income, and hastening the removal of sales tax on food.
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Kansas House Leadership Hails Tax Plan Victory, Challenges Lie Ahead
Republican Kansas House Speaker Dan Hawkins of Wichita praised the plan’s approval as a win for Kansans and credited the hard work of the Kansas House Tax Committee, which is chaired by Republicans, for its accomplishment. With overwhelming support, the proposition passed by a resounding vote of 123 to 0. But there will be difficulties when House lawmakers work through the Kansas House Senate’s reconciliation process and try to get Governor Kelly’s support. Although Kansas House Democrats think the package is a good compromise, Governor Kelly is still wary, raising questions about the proposal’s possible financial effects. The plan will likely cost more than $500 million a year when it is fully implemented. The ultimate outcome of the tax relief package is still up in the air as talks continue. The chief of staff for Governor Kelly underlined how crucial it is that childcare tax credits be included in the final law. Potential roadblocks also exist in the Kansas House Senate, where a veto-proof majority of senators previously supported a flat tax. Republican senator from Andover, Ty Masterson, expressed receptivity to other ideas but refrained from officially supporting the Kansas House’s plan. During these discussions, Kansas House Minority Leader Vic Miller emphasized the importance of the compromise established in the Kansas House and pushed his colleagues to resist pressure from the Senate.
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