A Democratic tax plan advanced in the House on Wednesday with an 83-39 vote.
The plan which had the support of Democrats and moderate Republicans, would end the LLC tax cut that has been in place for several years and affects small businesses. It also would raise income tax rates.
The Democratic tax plan will be up for final action today about 11 a.m. when the House goes into session.
Kansas reportedly faces a budget shortfall of over three-quarters of a billion dollars. The atmosphere in Topeka has changed this year, with a number of moderate Republicans winning office, especially from Johnson County.
State Rep. Pam Curtis, D-32nd Dist., stated, “I am pleased that a coalition of Democrats and Republicans in the Kansas House stood together to pass a comprehensive tax reform package. While HB 2178 is not perfect and may not be the final product, it is the first step towards restoring fiscal stability in our state. It sends a strong message regarding the House position that the ‘march to zero’ income tax policy is no longer acceptable.”
The Democratic plan was opposed by Gov. Sam Brownback, who issued this statement on Wednesday:
“Today, the House moved forward on the Democratic tax bill that would pummel the pocketbook of middle class families. It drastically hikes taxes retroactively on workers making as little as $15,000 annually. While on the campaign trail many of these representatives pledged to raise taxes on the wealthy, but now they are attempting to tax everyday Kansans. It doesn’t have to be this way. I will continue the fight to keep your income taxes low.
“This plan also unfairly raises taxes retroactively on Kansas job creators, sending a negative signal to businesses looking to start or relocate in Kansas,” the governor’s statement continued. “There is a better way. My budget solves the challenges of today, has solutions for tomorrow, and avoids punishing tax increases on middle class workers, families, and job creators.”