The Kansas Senate has sent a tax increase to Governor Sam Brownback on a 22-18 vote Friday morning.
The bill, which passed the House on Thursday repeals, effective for tax year 2017, which would go back to January of this year, the exemption for non-wage business income. It also allows for the itemized deduction of medical expenses to be included at a hundred percent for tax year 2017. It also increases individual rates, the second bracket to 5.25 percent and adds a third bracket at 5.45 percent at $100,000 of income married and $50,000 of income for individuals. Those also are effective for tax year 2017, retroactive to January.
Republican Senator Mary Pilcher-Cook of Shawnee opposed the bill.
“It’s a tax increasing tornado that leaves no Kansan untouched in its wake,” said Pilcher-Cook. “It sweeps money right out of the pockets of families working multiple jobs just to make ends meet, and entrepreneurs who took the risk to create their own jobs and help our economy grow. Gone are the campaign promises of merely eliminating the small business tax incentive and generating enough new revenue to balance the budget. Rather, 2178 says the money Kansans earn belongs to the government first and the people last.
Democrat Senator Marci Francisco of Lawrence voted in favor after initially passing.
“I do appreciate the work that was done by legislators in the House, to craft a tax bill to eliminate the non-wage income loophole and establish a third tier of income tax rates. I remain concerned that this bill sets the second tier for married individuals filing jointly and earning over $30,000 at 5.25 percent, higher than the current rate of 4.6 percent and sets the third tier for married individuals earning over $100,000 at 5.45 percent, only .2 percent higher and a full percentage point less than it was in 2012, putting more of the burden on low and middle-income Kansans.”
Governor Brownback has said he does not support the bill, but has not yet taken a position on whether or not he will veto it.