Republican leadership in the Kansas Legislature is pleased with a tax cut plan announced Tuesday.
House Speaker Dan Hawkins and Senate President Ty Masterson say House Bill 2284 should both reduce taxes and simplify the tax code at the same time.
There are several components that resemble the plan announced earlier this month by Kansas Governor Laura Kelly:
*Eliminating state taxes on Social Security income
*Exempting the first $100,000 in state property taxes for all Kansas homeowners with annual adjustments for inflation
There are some key differences as well:
*HB 2284 is designed to use a dual-rate structure exempting the first $6,150 in income for every resident or $12,300 for married couples. It also establishes a 5.25 percent rate on income taxes after that. The governor’s plan does not use that structure.
*HB 2284 adjusts the standard deductions and increases the personal exemptions, both modified for inflation. Governor Kelly’s plan has different deduction adjustments.
*HB 2284 also ends the state sales tax on food on July 1 instead of immediately, as the governor has requested.
The governor’s plan also includes doubling the Child and Dependent Care Tax Credit and creating a back-to-school sales tax holiday. Neither feature is in the Republican plan.
