The Kansas Senate did its part late last week approving a tax bill that includes a new version of a flat tax proposal.
Senate Bill 539 would change income tax rates over six years, beginning with a universal rate of 5.7% this year, reducing a half a percent annually until 2029, when it would become 5.45%. State Rep. Kenny Titus says the House will have its go at the budget this week and explains how the flat tax would benefit middle class families.
“Say you’re married, the joint personal exemption jumps up to $22,000 and then is $3,000 per child and then you still get your standard deduction. Depending on how many children you have, you could be looking at somewhere of your first $40,000 of income being exempt from income tax,” he said.
Titus says the proposal, which is still likely to see more changes, would also create a social security exemption and an increased exemption in property tax. Republicans have long tried to get a flat tax bill passed, but it’s been a sticking point for Gov. Laura Kelly, who already vetoed a similar plan earlier this session.
“There are some members of our party that believe a flat tax is the key component and they’re approaching it from a vision of structural change. They view that structural change as making Kansas the most competitive in comparison to our neighboring states,” he said.
Titus says he doesn’t have a problem with a flat tax, noting his top priority is a bill that balances tax relief for the middle class.
Titus says the legislature will also hold a hearing on Medicaid expansion this week.
Titus joined KMAN’s Morning News Friday for our weekly legislative update. That interview can be found here.
