Kansas Republicans are fast-tracking tax cuts, despite not having veto-proof majorities
- Oops!Something went wrong.Please try again later.
The Kansas Senate has passed a tax cut package totaling $1.6 billion over three years as Republicans fast-track a flat tax through the Kansas Legislature.
But Republicans are proceeding without veto-proof majorities that will be necessary to override a likely veto from Democratic Gov. Laura Kelly.
Sen. Caryn Tyson, R-Parker, said House Bill 2284 is a "great package."
"It has a little bit of something for everyone," Tyson said. "It is a tax cut for all Kansans."
The most substantial piece of the tax cut package is moving to a single-rate income tax, also known as a flat tax, has been a top priority of Republicans.
The 5.25% personal income tax rate plus an increase in the standard deduction would result in $92 million in tax relief in fiscal year 2025, $306 million in 2026 and $309 million in 2027. The whole package amounts to $1.6 billion in tax cuts over those three years.
But a legislative research document provided to senators on adjusted gross income and effective tax rate showed the greatest income tax benefit in HB 2284 goes to the poorest and the richest Kansans. People in the middle income levels would see negligible benefit.
"If you're making between $40,000 and let's just say $75,000, you're essentially paying the same amount in income tax next year, if this were to take effect," said Sen. Alicia Straub, R-Ellinwood.
Senate does not have veto-proof majority
The Senate voted 25-11 on HB 2284. A supermajority is 27 votes out of 40 senators.
Swing votes "no" came from two senators: Rob Olson, R-Olathe, and Dennis Pyle, a conservative independent from Hiawatha.
Two swing "yes" votes came from Sens. Carolyn McGinn, R-Sedgwick, and Alicia Straub, R-Ellinwood, both voted "yes" after being swing flip-flops on last year's Senate Bill 169.
Absent at Wednesday's vote were Sens. John Doll, R-Garden City; David Haley, D-Kansas City; Tom Holland, D-Baldwin City; and Kristen O'Shea, R-Topeka.
O'Shea has previously voted for a flat tax, while Doll, Haley and Holland have all previously opposed it.
That means that for Republicans to have a veto-proof majority, they would need O'Shea's yes vote plus a pickup of one more "yes" vote while not losing any supporters.
The House is expected to vote sometime Thursday. Last session, the House did not get to vote on a veto override, but the chamber did have a veto-proof majority in an earlier vote.
More: Division over this tax cut idea could mean no relief for any Kansans in 2024
Tax cut bill is getting fast-tracked
The gut-and-go tax package, HB 2284, was negotiated by four Republicans on a conference committee that kicked off the two Democrats through a process typically reserved for the waning days of session. It means that individual legislators in either chamber cannot offer amendments.
While the pieces of the tax cut package are similar to a failed plan from last session and have received debate in the past, the new tax cut plan never went through the normal committee process where the public can comment on the proposals.
Using the conference committee process allowed the tax plan to be put together on Tuesday and voted on in the Senate on Wednesday. The text of the 37-page conference committee report was not publicly available until about the same time the Senate started debating the legislation.
Olson tried to send the bill back to the conference committee, but his motion failed 24-11.
"We need more transparency, more time in the process," he said.
The House was expected vote on the bill on Thursday. It would then go to the governor for a likely veto within the next several days, which could set the Legislature up for a veto override attempt later this month.
What's in the tax cut plan
A 5.25% flat tax on all earnings over $6,150 for individuals or $12,300 for married couples.
Indexing the standard deduction to increase with inflation.
Additional $50 to the $2,250 personal exemption tax credit per dependent.
Eliminates income taxes on Social Security benefits.
Exempts first $100,000 from state property taxes and will increase with inflation.
Ends all sales tax on food in July rather than January.
Cuts the privilege tax regulating banking and financial institutions.
This article originally appeared on Topeka Capital-Journal: Kansas Republicans fast-track flat tax package without supermajorities
