May 8, 2012

Kansas Tax Bill Would Cost $600 Million a Year While Hiking Taxes on Low-Income Families


Kansas legislators are set to vote on a tax bill recently approved by a joint House-Senate conference committee. An ITEP analysis of the agreed-upon tax bill shows that it would reduce state tax collections by close to $600 million a year, while actually increasing taxes on many low- and middle-income Kansans.

The conference committee plan exempts ‘pass-through’ business income from the personal income tax; cuts the top income tax rate; repeals itemized deductions for medical expenses, property taxes, investment interest, casualty and theft , unreimbursed employee expenses, tax preparation fees, and “other miscellaneous deductions.” It also eliminates a tax credit for low income renters and requires low-income filers to claim either the food sales tax rebate or the earned income tax credit.

Read the Full Report (PDF)