Will Kansas lawmakers reaffirm the tax relief plan they recently approved during the 2024 veto session beginning this week, or will they approve a plan suggested Wednesday by Governor Laura Kelly?
The governor vetoed several bills that would have led to a roughly $1.5 billion tax relief package over three years, instead submitting an alternate plan leading to about $1.3 billion in relief for residents. The governor’s plan takes certain similar approaches to the Republican plan while diverging in notable areas:
*The Kelly plan accelerates the elimination of the state’s sales tax on groceries to July 1, as did the Republican plan.
*Governor Kelly keeps the current three tax brackets in place, but lowers each of the tax rates. Republicans approved a two-rate plan.
*Kelly increases the standard deduction, personal exemption, and child care tax credit for dependent care expenses.
*Kelly, like Republicans, immediately eliminates state taxes on all Social Security income.
*Kelly’s plan cuts property taxes for Kansans by exempting the first $125,000 of all homes from the statewide property tax levy.
Not surprisingly, Republican leaders were highly displeased by the vetoes. House Speaker Dan Hawkins said: “Kansans need and deserve tax relief and Governor Kelly isn’t serious when she says she wants to provide it.” Senate Majority Leader Ty Masterson concurred, saying, “the governor has rejected over 75 tax cuts, preferring to keep record surpluses in government coffers rather than returning it to the people.”
Governor Kelly is in Emporia on Thursday to meet with a trio of local business leaders and hold a short news conference on Medicaid expansion.
