It would implement a 5% flat tax on personal and corporate income. The House's tax committee held two days of hearings last week on the Kansas Chamber's flat tax plan, HB 2061.
The surcharge on income greater than $25,000 is 2.125% for banks and 2.25% for trust companies. That 7% top rate is due to be cut to 6% through past economic development legislation.īanks and trust companies pay a privilege tax with a 2.25% base rate. The tax then increases to 5.7% for any income above $30,000 for individuals and $60,000 for couples.īusinesses pay a base 4% corporate income tax, plus a surcharge of 3% on income above $50,000. After that, the tax increases to 5.2% on any income between $15,000 and $30,000 for individuals and between $30,000 and $60,000 for couples. Kansas has three tax brackets for the personal income tax.Įveryone starts with a 3.1% tax on the first $15,000 for individuals and $30,000 for married couples filing jointly. More: These tax cuts will be prioritized this legislative session as Kansas enjoys $2.3B surplus What is the current Kansas income tax? Laura Kelly has warned the GOP supermajorities in the Legislature against "irresponsible" tax cuts. Republican leadership have expressed a strong desire to move the state to a flat tax, even as Gov. With a flat rate, "Everybody's paying the same thing, and that seems perfectly fair," Trabert said.
"In honor of Valentine's Day, the size of the fiscal note is reflective of how much I love you all," chamber lobbyist Eric Stafford told legislators in a Valentine's Day hearing.ĭave Trabert, of the Kansas Policy Institute, acknowledged "a lot of angst" over the fiscal note, while challenging the Kansas Department of Revenue to "show your work." The Kansas Chamber's 5% flat tax proposal is projected to cost state coffers $1.5 billion a year, far more than the failed tax cuts of former Gov. Undeterred by a projected sizeable hit to state revenues, Kansas politicians and lobbyists are pressing forward on a flat income tax plan, leaving the governor's warnings unheeded.
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