TOPEKA, Kan. (AP) — The Latest on the Kansas Legislature’s debate the state’s budget problems and increasing taxes to address them (all times local):
3:50 p.m.
The Kansas Senate has decided to short state contributions to public employee pensions under the state’s 2018 and 2019 budgets to give lawmakers more options in raising taxes to make the books balance.
But senators expect to revisit the pension issue later.
They gave first-round approval Wednesday to proposed budgets for the 2018 fiscal year starting in July and the 2019 fiscal beginning in July 2018.
The Senates’ voice vote on the single “mega” budget measure for two years advances the measure to a final vote Thursday. The House is working on its own bill.
Senators decreased state contributions to public employee pensions by a total of $330 million over two years. The move lowers the amount of new revenue needed from higher taxes to $545 million for the period.
11:10 a.m.
Republican legislators in Kansas are working on multiple proposals for raising personal income taxes that would move the state to a single rate for all filers.
The House Taxation Committee planned to vote Wednesday on a bill imposing a “flat” personal income tax of 5 percent for all filers. The state has two tax brackets, with a lower rate of 2.7 percent and a top rate for higher-income filers of 4.6 percent.
Supporters believe the proposal would raise $871 million in new revenue over two years, starting in July. The state is facing projected budget shortfalls totaling more than $1 billion through June 2019.
In the Senate, the Assessment and Taxation Committee is working on its own proposal for a single, 5 percent personal income tax rate.
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TOPEKA, Kan. (AP) — Kansas legislators are considering a new proposal to raise personal income taxes that would move to a single rate for all filers.
The House Taxation Committee reviewed a measure Tuesday for a so-called flat income tax favored by conservative Republicans. The panel plans to vote on it Wednesday.
Kansas faces projected budget shortfalls totaling more than $1 billion through June 2019. Lawmakers have considered rolling back past personal income tax cuts championed by GOP Gov. Sam Brownback.
The House committee’s bill would move Kansas from two income tax brackets to a single tax rate of 5 percent. Supporters say it would raise $871 million over two years.
The measure would offset higher income taxes for poor and middle-class families by doubling standard deductions and lowering the sales tax on groceries.