Kansas tax plan

Members of Congress might want to familiarize themselves with the story of Kansas' failed tax-cutting experiment as they begin deliberations on President Donald Trump's tax-reform plan.

It could serve as a cautionary tale because some elements of the president's updated proposal mirror pieces of the tax-cut plan that Republican Gov. Sam Brownback pushed through the state legislature in 2012, promising it would deliver a "shot of adrenaline" to the Kansas economy.

Members of Congress may want to take heed of Kansas's failed tax-cutting experiment. That's the advice of a national fiscal policy analyst who's studied it.

Stephen Koranda / Kansas Public Radio/File photo

August tax collections in Kansas topped estimates by more than $8 million.

The state Department of Revenue reported $460 million in tax collections last month, ahead of its official projection of $452 million.

The AP reports that since Kansas' current budget year began on July 1, that state has collected a total of $914 million in taxes, about $16 million more than projected.

Kansas Revenue Secretary Sam Williams said it's too early to tell whether economic growth is boosting revenues.

Bryan Thompson / Kansas News Service

Kansas Gov. Sam Brownback’s prized income tax exemption for businesses is gone.

Over the governor’s veto, in June lawmakers raised income tax rates and repealed the exemption that had benefited roughly 330,000 business owners, including about 53,000 farmers.

nostri-imago / Flickr / Creative Commons

A subcommittee in the U.S. House of Representatives was discussing tax reform on Thursday, and they’re considering some of the same types of tax policies that Kansas recently overturned. Kansas came up multiple times in the discussion.

The plan in the subcommittee would cut tax rates and cut taxes on some business income, known as pass-through income. The goal is economic growth and specifically boosting small business.

California Democrat Mike Thompson noted the similarities to Kansas policies that were repealed.

Stephen Koranda / KPR/File photo

Taxes in Kansas will be climbing over the weekend because a tax increase approved by lawmakers is taking effect. The new law will raise income tax rates and reinstate income taxes for thousands of business owners.

“We’re encouraging everybody to just think about it,” said Kansas Revenue Secretary Sam Williams.

For wage-earning employees, Williams recommends studying paychecks in July to make sure the income tax withholding has been increased.

401(K) 2012, flickr Creative Commons

The Kansas Department of Revenue released tax tables on Tuesday that designate how much income employers should withhold from employee paychecks. The policy is the result of the tax increase that was recently passed by state lawmakers.

Stephen Koranda / KPR/File photo

Three Kansas lawmakers say Gov. Sam Brownback told a small group of legislators it would be politically better for him if they overrode his veto and repealed tax cuts rather than proposing another tax plan for him to sign.

Nine lawmakers met privately with Brownback the morning of the day the Legislature overrode his veto of a tax bill. They said the meeting swayed some conservative Republicans to join moderates and Democrats in the override.

Kansas News Service/File photo

Gov. Sam Brownback defended his signature tax cuts last week after lawmakers overrode his veto of a bill repealing them, but he may have exaggerated their impact.

Stephen Koranda / KPR/File photo

The head of the Wichita Regional Chamber of Commerce says the tax deal Kansas lawmakers struck Tuesday wasn’t exactly what the local business community was looking for.


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