Massive tax relief is on the horizon for Kansas residents as lawmakers approve a new bill that slashes income and property taxes. The new bill, estimated to cost the state about $2 billion over the next five years, is a collaborative effort between the Democratic governor and GOP leaders. What's Included in the Tax Relief Bill?
The new bill consolidates the state's three income tax brackets into two, lowering the top rate from 5.58% to 5.2%. Joint filers will now enjoy tax exemption on the first $25,000 of their annual income. Moreover, the bill eliminates taxes on Social Security for those earning over $75,000, increases the standard deduction and personal exemptions, raises the residential exemption on state property taxes to $75,000, and doubles the income tax credit for child care expenses. Financial institutions also benefit from a 14% tax cut. However, the bill does not alter the food sales tax, meaning the state's sales tax on groceries will be removed in January as planned. Republicans Push for More
While Gov. Laura Kelly, a Democrat, supported the bill, many Republicans felt it fell short. They believed that the property tax relief could have been more substantial. Despite demands for $230 million more in tax cuts over three years, Gov. Kelly stood firm, expressing concerns about potential budget shortfalls. The bill, prioritizing income tax reductions, received overwhelming bipartisan support in the Legislature. Gov. Kelly, who vetoed previous tax-cutting proposals, emphasized that while the bill may not be perfect, it does offer significant relief to Kansas residents. The new tax relief package is expected to be signed into law soon, providing substantial savings for taxpayers across the state.