Reporter: Associated Press

UPDATE: Tuesday, May 22, 2012

Kansas Gov. Sam Brownback has signed massive cuts in state income taxes into law.

Brownback signed the bill during a Statehouse ceremony Tuesday.

A contentious debate continues about whether the cuts will usher in economic prosperity or create massive budget problems.

The law will cut individual income tax rates for 2013 and eliminate income taxes for the owners of 191,000 businesses.

Coupled with a sales tax reduction already scheduled for July 2013, the income tax cuts would provide $231 million in tax relief for the fiscal year beginning July 1. The annual figure would grow to $934 million after six years.

A forecast from the Legislature's research staff shows that a budget shortfall would emerge by July 2014 and, if left unchecked, grow to nearly $2.5 billion by July 2018.

Tuesday, May 22, 2012

Kansas Gov. Sam Brownback is planning to sign massive income tax cuts into law during a Statehouse ceremony.

Brownback's office announced that he would sign the measure at noon Tuesday.

The governor and his fellow conservative Republicans argue that the cuts will stimulate the state's economy and generate new jobs.

But critics worry that the cuts will create a budget crisis, based on projections from the Legislature's staff showing a budget shortfall emerging by July 2014.

The bill would cut top individual income tax rates for 2013 and eliminate income taxes for the owners of 191,000 businesses.

Coupled with a sales tax reduction already scheduled for July 2013, the income tax cuts would provide $231 million in tax relief for the fiscal year beginning July 1.

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