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Wed January 2, 2013
More Tax Changes May Be Afoot In Kansas
A large tax overhaul takes effect in Kansas now that the New Year has begun, but it may not remain as-is for long.
Governor Sam Brownback believes there's a good chance that legislators could again look at taxes, and Brownback himself may address taxes in his budget plans.
The changes taking effect lower personal income tax rates, and completely eliminate income taxes for nearly 200,000 businesses. Supporters say it will spur the economy in Kansas, but legislative staff say it will create budget deficits in the coming years.
Governor Brownback originally proposed eliminating some tax credits and exemptions -- and making a temporary sales tax permanent -- to pay for his tax plan.
In an interview last month, Brownback said he would propose a plan to weather the projected shortfall.
“That’s why I want to lay out a two-year budget, show here’s a pathway that we can deal with this. Then, let the Legislature chew on that,” said Brownback.
Brownback offered few details, saying he’ll wait until the State of the State address to unveil his plans.