Kansas House advances legislation that would automatically lower income tax rates based on surplus funds. Senate Bill 269, known as the “income tax trigger bill,” would reduce individual and corporate income tax rates to as low as 4%, contingent on maintaining the state’s rainy day fund. The bill passed in the House mostly along party lines, with Democrats raising concerns about potential budget shortfalls and lack of property tax relief.
Democrats warned against repeating past mistakes, referencing former Gov. Sam Brownback’s tax experiment that resulted in financial struggles for the state. They questioned the feasibility of providing property tax relief alongside the proposed income tax cuts. Rep. Tom Sawyer highlighted the challenges of fully funding special education and dealing with potential budget deficits during future recessions.
Despite the concerns, the bill would trigger income tax rate reductions if surplus funds exceed a certain threshold, with reductions starting with individual income taxes and progressing to corporate rates. The changes are set to go into effect in 2025, pending approval from the Senate.
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