Big Kansas Tax Cut Bill Passes, Could Produce $2.7 Billion Shortfall

May 9, 2012

The Kansas House has surprised the Senate by bypassing a compromise tax-cut plan while the Senate was preparing to vote on it.

The alternative plan had been worked out after the Legislature's staff said the earlier version would produce a major shortfall.  But before the Senate could vote on that version, the House gave final approval to the earlier plan with larger cuts and sent the bill to Governor Brownback.

The version that goes to the governor would provide $233 million in tax relief in its first year, increasing to $911 million in the fourth year.  It would cut personal income taxes in all brackets, phase out income taxes for 191,000 businesses and lower the sales tax to 5.7 percent next July.  The House vote was 64-59

The Legislature's research staff calculated that the plan, which passed, will leave Kansas with a revenue shortfall of more than $2.7 billion dollars by July of 2017.