Kansas House Committee Considers Rolling Back Business Tax Cut

May 8, 2015

Credit Stephen Koranda

A Kansas House Committee is looking at rolling back a key part of the 2012 tax cut. It's specifically aimed at the tax break that allows more than 300,000 business owners to pay zero income tax on their business income. The goal of the tax break is boosting the economy. Republican Representative Mark Hutton says the tax cut for businesses isn't paying off.

“The individual tax savings are not significant enough to spur employment growth or lure companies to our state, yet it’s costing our state over $200 million,” says Hutton.

Hutton's plan would reinstate taxes on the business income, but it would give a benefit to businesses that create jobs. Business owners who have at least one full-time employee would be able to pay a lower tax rate.

Several business groups spoke against the plan. Luke Bell, with the Kansas Association of Realtors, says lawmakers haven’t given the tax cuts enough time to work.

“Wanting this tax plan to produce results at this point in time is like giving your child a bike and expecting them to be Lance Armstrong a week later,” says Bell.

Lawmakers are looking for ways to fill a budget deficit of more than $400 million.