Proposed tax plan eliminates taxes on Social Security income and moves Kansas into two tax brackets

Proposed tax plan eliminates taxes on Social Security income and moves Kansas into two tax brackets

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TOPEKA, Kansas (KAKE) – Kansas Governor Laura Kelly and GOP leaders have finally reached an agreement on a tax relief plan. This comes after months of disagreements.

Republican leaders who helped craft the plan said they think it will help Kansans around the world save money.

“That would be great, because we’d get income tax relief, we’d get Social Security income tax relief, we’d get estate tax relief,” said House Speaker Dan Hawkins, a Wichita Republican.

The proposed tax plan would move Kansas into two tax slabs. Currently, the state has three slabs. Hawkins explains that this means the lowest tax slab would essentially be reduced to zero. This means that if you are in the lowest slab or if you are part of a married couple that earns $30,000 or less, income tax would be eliminated.

“We’re going to create a whole category for low-income people who will pay zero, and right now they’re probably paying 3, 4, 500 bucks a year, which is significant for them,” Hawkins said.

The plan would completely eliminate taxes on Social Security income for everyone. Senate President and Andover Republican Ty Masterson says the plan would help every Kansas resident save money.

“Every homeowner will get property tax relief, and then every income tax payer will get relief as well,” Masterson said.

The agreement comes after months of fighting to reach a plan. In April, Governor Kelly vetoed a similar Republican-backed plan as being too aggressive.

“Legislative leadership and I have reached consensus on a tax relief package that will be introduced in the House and Senate during the upcoming special session. This agreement provides significant, long overdue tax relief to the people of Kansas while preserving our ability to invest in the state’s future. This agreement is not without its flaws. The change from a three-tier to a two-tier income tax structure limits the amount of property tax relief offered to Kansas people. However, it meets the affordability criteria I proposed. Therefore, if the Legislature passes this negotiated agreement, I intend to sign it.”

Specific figures on how much it will save taxpayers will be released on Monday, and the plan will be presented and voted on in a special session on Tuesday. Masterson said he doesn’t expect a long session.

“The Senate will take it up first, then send it to the House, the House will take it up, pass it, and then we’ll be done,” he said.

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