TOPEKA (KSNT) - Governor Laura Kelly's tax plan has been introduced to the Kansas House and Senate. The proposed bill could save Kansans over $1.3 billion over four years.
The plan seeks to cut state property taxes, eliminate taxes on Social Security income, increase standard deductions, immediately axe the state sales tax on groceries and other household goods, double the Child and Dependent Care Tax Credit and create a back-to-school sales tax holiday, according to a press release from the Office of the Governor.
Similar to the GOP Flat Tax Bill, individuals with residential property assessed under $100,000 would be exempt from taxation on the property. A report from the Institute on Taxation and Economic Policy (ITEP) estimated the GOP bill would save the wealthiest billionaire in Kansas, Charles Koch, $875,000 per year. According to ITEP, the top 1% of earners would see far larger tax cuts than anyone in the 99% of families.
“The introduction of this bipartisan tax cut plan in both chambers is the first step toward putting money back in the pockets of hard-working Kansans,” Kelly said. “This comprehensive, fiscally responsible plan to cut property, sales, and retirement taxes benefits middle-class families — without putting at risk our public schools, roads, and stable economy.”
The bill was introduced to the Kansas House as House Bill 2586 and introduced to the Kansas Senate as Senate Bill 377.
Plan | 2024 | 2025 | 2026 | 2027 | 2028 |
Axe the Tax Pull Early Start Date | 20.8 | 72.6 | |||
Fem. Hygiene/Diapers Sales Tax Elimination | 1.2 | 7.1 | 7.1 | 7.1 | 7.1 |
Eliminate Social Security State Income Tax | 152.1 | 120.7 | 124.4 | 128.1 | |
Standard Deduction Increase | 90.5 | 70.4 | 71.1 | 71.8 | |
Childcare Tax Credit | 6 | 6 | 6 | 6 | |
Bank Privilege Match Corporate Income Rate Reduction | 13 | 7.4 | 7.5 | 7.6 | |
Back to School Sales Tax Holiday | 4.8 | 4.9 | 5 | 5 | |
20 Mills Residential Exemption Increase to $100k in TY24 | 93.4 | 98.2 | 103.2 | 108.5 | |
Savings in millions: | 22 | 439.5 | 314.7 | 324.3 | 334.1 |
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