Governor Laura Kelly and Senator Dennis Pyle came together to celebrate a bipartisan compromise on tax cuts, with Kelly praising Pyle’s efforts to eliminate state taxes on Social Security income. The bill, which will reduce state taxes by $1.2 billion over the next three years, includes significant relief for Kansas seniors and property owners. Despite previous disagreements on more expensive tax cut proposals, Kelly and Pyle were able to find common ground and pass a plan that both eliminates the Social Security tax and provides property tax relief. The bill went into effect on July 1 after being approved during a special session in June.
Pyle, who has worked for 10 years to eliminate the state income tax on Social Security, expressed gratitude to Kelly for prioritizing property tax cuts. The plan includes exemptions for the first $75,000 of a home’s value from the statewide mill levy, up from $42,000 in the previous exemption. Both Kelly and Pyle emphasized the importance of finding a balanced approach that provides tax relief while ensuring the state can meet its financial obligations. Despite some concerns about the plan benefiting higher wage earners, the compromise was seen as a significant step forward.
While some GOP leaders initially proposed a flat tax plan that favored higher income earners, Kelly’s veto of that proposal led to a more equitable compromise. The governor and lawmakers, facing a $3 billion surplus, were eager to cut taxes in an election year, but also remained focused on maintaining fiscal responsibility. Moving forward, Kelly highlighted the need for continued discussions on property tax relief in future sessions.
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