![]() ![]() Switching to a flat tax would do the opposite and make the tax structure regressive, Ginther said. Screenshot of legislative hearing Donna Ginther, a University of Kansas economist, contends a flat income tax rate will shift the burden from the state's wealthiest onto low-income earners. That’s a classic progressive income where the richest Kansans pay a higher rate. The existing tax code has three brackets, ranging from 3.1% to 5.7%. But three Republican senators - Chase Blasi, Carolyn McGinn and Tim Shallenburger - were absent from the vote.ĭonna Ginther, a University of Kansas economist, said enacting the flat tax portion of the bill could disrupt the state’s tax structure and lead to more diminishing returns than lawmakers are bargaining for. In their votes to pass the bill, the House reached the veto-proof majority and the Senate came up three votes shy. Republican lawmakers may have the votes to get it done. That may not be enough to stave off Kelly’s veto, setting up yet another veto override fight in the Legislature at the end of the month. They paired that with a faster elimination of the state’s sales food tax next year and a reduction of Social Security taxes for people earning between $75,000 to $100,000 - two changes Kelly has championed. A similar plan was pitched by the Kansas Chamber of Commerce, one of the biggest conservative lobbying groups in the state.īut the House and Senate landed on a compromise rate. The Senate’s initial proposal would have dropped the rate to 4.75% and cut revenue by $570 million a year. The package that ultimately landed on her desk comes with a much smaller price tag. “I have looked at the numbers,” Kelly said, “and I have yet to come up with a flat tax that is sustainable over time.” While lawmakers were negotiating the package in the Statehouse last week, Kelly told reporters that a single income tax rate would hurt the state’s revenue. Laura Kelly said before the Legislature passed the plan that she was skeptical of a flat tax. Republicans and conservative advocacy groups contend the single rate makes the tax code fair for all Kansans.īut Democratic Gov. ![]() That’s projected to carve out more than $330 million a year from state revenues. All Kansans would pay a 5.15% state income tax, starting after the first $12,000 for married couples filing jointly. ![]()
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