UPDATE: Wednesday, May 9, 2012
New figures from the Kansas Department of Revenue suggest that a plan legislators are considering to cut income and sales taxes would benefit all classes of taxpayers.
The department released the figures Wednesday just hours before the Senate was to vote on the plan. The Associated Press obtained the figures from the agency before they were turned over to the Legislature.
The figures show that some of the state's poorest taxpayers, who now receive income tax refunds, would receive smaller refunds under
the plan. However, the department projects that change would be offset by a reduction in the sales tax.
The plan reduces individual income tax rates; phases out income taxes for 191,000 businesses and drops the sales tax to 5.7 percent
in July 2013 from its current 6.3 percent.
Wednesday, May 9, 2012
The Kansas Senate expects its vote to be close on proposed income and sales tax cuts.
Senators were set to vote Wednesday afternoon. The plan is expected to provide about $60 million in tax relief for the fiscal year beginning July 1, with the total eventually rising to $600 million annually.
The plan reduces individual income tax rates, phases out income taxes for 191,000 businesses and other businesses, and drops the
state's sales tax to 5.7 percent in July 2013 from its current 6.3 percent.
But a Washington-based think tank has said the plan would favor the wealthy over the poor.
If senators pass the plan, the House will vote, possibly as early as Wednesday evening. Its approval would send the measure to Republican Gov. Sam Brownback.