UPDATE: Thursday, March 15, 2012
New estimates show that a sweeping tax-cut bill approved by the Kansas House would have a smaller impact on state revenues than earlier projected.
Documents prepared by legislative analysts and obtained Thursday by The Associated Press put the cost of cutting income and sales taxes at nearly $334 million in the first year.
Projected over five years, the cost grows to nearly $2.2 billion. The figure includes nearly $776 million from cuts in income taxes, and $1.42 billion from abolishing the sales tax on food.
The documents also show that a separate tax-cut plan endorsed by a Senate committee would cost the state about $105 million in the first year. That plan is a modified version of proposals from Gov. Sam Brownback.
UPDATE: Wednesday, March 14, 2012
The Kansas House has approved a sweeping package of tax cuts, sending it to the Senate despite misgivings that it costs too much and favors the wealthy over poor residents.
Supporters say the plan approved Wednesday is a step toward tax relief and job creation. Critics say some provisions favor the wealthy and businesses. Others say Kansas can't afford the plan, estimated to cost between $375 million to $425 million.
It's the second plan approved by the House in two years to cut income taxes. Last year plan's never got a vote in the Senate. And
on Wednesday, a Senate committee endorsed a separate income tax
plan offered by Republican Gov. Sam Brownback with minor changes.
House Speaker Mike O'Neal says he's confident some form of tax relief will pass.
Wednesday, March 14, 2012
Kansas House members have approved a sweeping package of tax cuts, sending it to the Senate despite misgivings that it costs too much and favors the wealthy over poor residents.
The vote Wednesday was 68-56. Supporters said the plan is a step toward tax relief and job creation, while critics said certain provisions favor wealthy people and businesses. And some critics said the bill's estimated price of between $375 million to $425 million was more than the state can afford.
The plan is the second the House has passed in two years to cut income taxes. Last year's plan languished in the Senate and never
came up for vote.
However, House Speaker Mike O'Neal is confident some form of tax relief will pass this session.