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Kansas House Committee Votes To Roll Back Business Income Tax Cut

Stephen Koranda
KPR/File photo

A Kansas House committee has voted to undo part of the tax cuts that Governor Sam Brownback pushed.

The committee voted to reinstate some business income taxes, which were completely eliminated by the 2012 tax cut.

The bill would raise nearly $134 million during the next fiscal year.

The state would impose a 2.7 percent tax on most of the business owners' and farmers' profits, but income from rents and royalties would be taxed at 4.6 percent - mirroring the two income tax rates on wages.

Republican Representative Mark Hutton says the current law creates an unfair system and may not be spurring much job growth.

“I would argue, as a business owner, that the federal code takes precedent far ahead of any consideration that I get from the state on this issue,” says Hutton.

Republican Representative Kasha Kelley says reversing the cuts sends a bad message. She says the policies are working to grow the economy and Kansas should stay the course.

“When you have a ground that’s packed after years and years of doing the same thing, you have to take some time to till it, you have to take some time to nourish it. That’s what this tax package is doing, but it takes time,” says Kelley.

The bill will now be considered by the full House. Legislators are trying to find a way to fill a budget hole of more than $400 million.

Stephen Koranda is Statehouse reporter for Kansas Public Radio and the Kansas News Service, a collaboration of KCUR, KMUW, Kansas Public Radio and High Plains Radio covering health, education and politics.
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