Kansas House Presses On With Tax Relief, Edges Closer To Showdown With Governor

The Republican-controlled Kansas House approved wide-ranging tax legislation Thursday. The measure would reduce sales taxes on food, which could help Kansans across the income spectrum. It would also give some big corporations a break, and that will likely spark a showdown with Democratic Gov. Laura Kelly.

Senate leaders introduced the initial version of the bill earlier this session in response to the federal tax overhaul of 2017. They pushed for the legislation to allow Kansans to continue itemizing on their state taxes even if they no longer do so on their federal returns because of larger standard deductions. They also wanted to free Kansas businesses from owing state taxes on overseas income that Congress incentivized them to repatriate.

Supporters of the proposal in both the Senate and the House said without it the federal tax cuts would trigger a state tax increase on businesses and people who itemize.

Opponents argued it amounts to a tax break for big business and the wealthy and would prompt the state to forfeit an estimated $400 million in revenue over the next three years just as its finances are stabilizing.

Read more: https://www.kcur.org/post/kansas-house-presses-tax-relief-edges-closer-showdown-governor#stream/0