Gov. Sam Brownback on Saturday outlined a tax policy that would raise cigarette taxes by 50 cents; increase the state sales tax to 6.65 percent; eliminate some itemized deductions; eliminate income taxes for more than 300,000 low-income Kansans; and continue rate reduction on income taxes.
According to a news release from the governor’s office, his policy would promote economic growth while balancing the budget.
“The plan outlined here will leave a projected ending balance of approximately $81 million in FY 2016 and $255 million in FY 2017,” the governor stated. “One-third of the revenue generated by this plan comes from closing loopholes in the income tax. The remaining two thirds is from consumption taxes. This is the kind of balanced approach many legislators – and most Kansans – prefer.”
“To be fair, if we are going to exempt small businesses from income taxes, an equally significant effort must be made to reduce income taxes on low-income Kansans,” the governor said in his statement.
To read the entire statement from the governor, visit https://governor.ks.gov/media-room/media-releases/2015/05/30/governor-sam-brownback-proposes-tax-policy-to-promote-economic-growth-and-balance-the-budget.