Kansas Legislature Works To Cut State Sales And Income Taxes

By: Alicia Myers Email
By: Alicia Myers Email

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Tuesday, May 1, 2012

State lawmakers are working on a plan that would cut the state's sales, business and individual income taxes. Negotiators hope the plan would help stimulate the economy.

"By doing that, we're going to make Kansas a more friendly state for businesses to locate and for people to move here. Kansas needs more people, and that's the way we're going to try to attract more people to come here from other states," said Sen. Les Donovan, (R) Wichita.

The way it stands now, the plan could reduce top individual income tax rates from 6.4 percent to 4.9 percent. It could also phase out income taxes for 191,000 businesses.

"I definitely see that lowering income tax would be good, just because of the economic theory with capitalism that if you have more money, you'll spend more money, which would ultimately help with the economy," said James Barlow, Wichita.

The plan would also cut the state sales tax from 6.3 percent to 5.7 percent.

"I think lowering taxes is always a good move, as long as we can keep up with things that need to be kept up," said Kevin McArthur, Wichita.

That is something lawmakers are still trying to figure out. Initial debate shows the plan could create a $161 million shortfall by July 2018. If true, lawmakers say the plan would never be passed.

"Kansas can't run a deficit. We're under law that says we can't end a session with a budget below water. We're not like the federal government, who can go out and spend more money. We cannot do that," said Sen. Donovan.

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