A bipartisan group of Kansas rank-and-file lawmakers on Thursday halted a tax cut plan with Republicans defying Republican leaders and Democrats ignoring personal appeals from the state’s Democratic governor.
The state Legislature rejected a plan to cut taxes by about $1.4 billion over the next three years. It grew out of an agreement between Gov. Laura Kelly and Republican leaders in the Republican-controlled Legislature, but the House voted on a voice vote to let negotiators in both chambers draft a different plan. Because of the overwhelming number of votes cast, House members did not request a tally or roll call vote.
Some critics, especially Republicans, thought the plan was too small. Others, mostly Democrats, argued that too much emphasis was placed on wealthy taxpayers because it would cut the state’s top personal income tax rate from 5.7% to 5.5%. Lawmakers from both parties thought the property tax cut was too small.
Kansas Republicans use ‘power of the wallet’ to tie immigration and DEI provisions in budget
“Let’s stand together and unite to send a message that Kansans deserve more,” state Rep. Stephen Owens, a conservative Central Kansas Republican who led the effort to defeat the bill, said during a short House debate. Stated.
The House’s action came after the Senate approved the plan 38-1, a vote that would normally bode well for a vote in the House. Instead, many House Democrats apparently plan to vote “no” on passing the bill, and House Republicans held a closed-door meeting outside the state Capitol in advance. This appears to be an attempt by proponents of the plan to lobby their colleagues.
Senate President Ty Masterson, a Wichita-area Republican, said the Legislature will not consider any new tax proposals this week. Lawmakers will adjourn for a three-week spring break on Friday before resuming for a few days on April 29 to finish work for the year. Masterson said other tax proposals may be considered at that time.
Kansas House Taxation Committee Chairman Adam Smith watches the House debate leading to the defeat of a tax cut plan at the state Capitol on April 4, 2024 in Topeka, Kansas. (AP Photo/John Hannah)
The Kansas incident comes two weeks after Georgia’s Republican-controlled Legislature passed individual and business tax cuts supported by Republican Gov. Brian Kemp. Like Georgia, Kansas also has a large budget surplus, which he projects to be more than $4 billion by the end of June 2025.
Twelve other states lowered their income tax rates last year, according to the conservative Tax Foundation, but in Kansas, a dispute between Republican leaders and Mr. Kelly over a Republican proposal for a single-rate “flat” income tax caused a major decline in Kansas. Large-scale tax cuts were blocked. , what Kelly said will benefit the “ultra-wealthy.”
Kelly vetoed a single-rate income tax proposal in January, but Republicans were unable to muster the two-thirds majority in both chambers needed to override her action.
Republican leaders have been vacillating over a single-rate income tax in recent weeks, denying the possibility of passing tax cuts before the end of the year. This year, all 40 state Senate seats and 125 state House seats are up for election.
House Speaker Dan Hawkins told his colleagues during a brief debate that if they rejected the plan, they would be exposed to headlines that read, “House ends tax cuts.”
“None of us want to end tax cuts,” said Hawkins, a Wichita Republican.
Their private meeting before the vote took place at the offices of the Kansas Association of Contractors near the state Capitol. When an Associated Press reporter showed up, Republican Rep. Patrick Penn of Wichita was pleading with his colleagues to overcome their fears. Republican leaders asked reporters to leave the room.
Later, after Mr. Owens finished his final speech in opposition to the bill, several Republican senators could be heard saying quietly, “Here we go,” and clapping and slamming their desks when the plan failed. Some members even attacked him.
And his dissatisfaction with the plan and Mr. Kelly’s intervention was evident Thursday morning when the governor met with House Democrats to pitch the plan. She touted it as a huge victory for Democrats.
“I can guarantee you we went as far as they wanted us to go, and way beyond that,” Kelly told them. “We should accept this and take credit for it.”
CLICK HERE TO GET THE FOX NEWS APP
In addition to adjusting the state’s top individual income tax rate, the bill would also eliminate the state income tax on retirees’ Social Security benefits, which begin to be taxed once they receive $75,000 annually. It also expands the state’s standard personal income tax credit, expands the earned income tax credit for child care costs, reduces the state’s property tax to fund public schools, and reduces the state’s tax deduction for expiring groceries. The 2% sales tax was supposed to end six months early. July 1.
Property taxes were modest. For a Kansas homeowner with a median value of $210,000, the annual savings would be approximately $140. The appraised value of a home could easily increase enough to wipe out the share in a year.
“In my opinion, this is a half-band-aid while the wound is still festering,” said state Sen. Tom Holland, a northeast Kansas Democrat and the only “no” vote in the Senate, during the debate. stated inside.
