Wednesday, March 27, 2013
The Kansas Senate's top negotiator on taxes says canceling a scheduled decrease in the sales tax is vital to allowing future reductions in income tax rates.
Wichita Republican Les Donovan defended the Senate's proposal to keep the sales tax at its current 6.3 percent rate as his chamber opened talks Wednesday with the House. The tax is set to decline to 5.7 percent in July by law.
Republican Gov. Sam Brownback and many GOP legislators want to follow up on personal income tax cuts with more cuts in income tax rates. But the state also must stabilize its budget.
Brownback and the Senate want to cancel the sales tax decrease while reducing income taxes further.
The House plan would drop the sales tax and cut income taxes less aggressively.
Kansas legislative negotiators are beginning work on the final version of a bill cutting individual income taxes.
Three senators and three House members planned to start their talks Wednesday. They've been appointed by legislative leaders to reconcile differences between their two chambers.
The legislation would follow up on massive income tax cuts enacted last year. Republican Gov. Sam Brownback and many GOP lawmakers would like cut personal income tax rates further, but the governor and legislators also must stabilize the budget.
The Senate embraced Brownback's proposals to guarantee further income tax rate reductions over the next four years while canceling a decrease in the sales tax scheduled by law for July.
The House approved a plan allowing the sales tax to drop and cutting income taxes less aggressively.