Kansas Republicans want a flat tax. It’s a ‘non-starter’ for Democratic Gov. Laura Kelly

Top Kansas Republicans will try to pass a flat income tax when lawmakers return to Topeka in January, but Democratic Gov. Laura Kelly calls the idea a “non-starter.”

As Kansas sits on a budget surplus of more than $2 billion, many Republican lawmakers want to again advance a flat tax after the governor blocked the proposal this spring. House and Senate GOP leaders even spent the fall touring the state promoting the idea.

But Kelly, who first won election as governor in 2018 promising to steer Kansas away from the fiscal woes of Republican Gov. Sam Brownback’s administration, remains a hard no.

“I will not support a flat tax,” Kelly told The Star in an interview. “When you look at the numbers, what you will see is it will take us right back where the Brownback tax experiment took us. It won’t be as abrupt or as drastic but over time we’ll get right back there.”

Earlier this year, the Republican-controlled Legislature failed to override Kelly’s veto on a bill that combined a single 5.15% income tax rate with tax policies the governor supported, like the accelerated elimination of the food sales tax and reduced taxes on Social Security. The flat tax proposal exempted the first $6,150 of income so no one would see a tax increase from the policy.

Heading into a crucial election year in which every legislative seat will be on the ballot, Kelly’s continued opposition to a flat tax leaves two options for Republicans hoping to impress voters by delivering tax relief. They’ll need to consolidate enough additional support to bypass the governor on a flat tax, or pursue a plan B with a different approach.

Sen. Caryn Tyson, a Parker Republican who chairs the Senate Tax Committee, said she’s preparing to introduce a bill with a 5.25% flat tax rate that exempts Social Security income from income taxes and increases the standard deduction at a rate tied to inflation. She expressed confidence the plan would garner enough votes to override Kelly’s anticipated veto.

“It is going to be an excellent bill for Kansas taxpayers,” Tyson said.

Proponents of the flat tax tout it as a way to drive economic development while offering everyone a tax cut.

House Speaker Dan Hawkins, a Wichita Republican, said a veto by Kelly would be evidence she didn’t want to provide tax relief. The single-rate tax combined with Social Security and property tax relief, he said, would build a structure that brings people to Kansas.

“Any of the ridiculous claims that it’s not fair, are just typical politician antics,” Hawkins said.

But Democrats largely reject the GOP plan as regressive and say it offers the most relief to Kansas’ highest earners and the least to middle class residents. Sen. Tom Holland, a Baldwin City Democrat, called the flat tax policy “dead on arrival.”

And Republicans are split on a flat tax, a significant obstacle. Republicans hold a supermajority in the Legislature but need near-total unity if they want to override Kelly.

“What I don’t like about it is it was really tilted towards the very wealthy,” Sen. John Doll, a moderate Garden City Republican, said.

Sen. Carolyn McGinn, a Sedgwick Republican who voted to override Kelly earlier this year, wouldn’t commit to supporting the policy again. And Sen. Rob Olson, an Olathe Republican who changed his “yes” vote to a “no” on the override vote, told The Star he still opposed the flat tax and has agreed to sponsor an alternative tax policy that will be introduced in the coming weeks.

While House Democrats have rolled out a tax plan focused on property tax relief, Kelly and Democratic lawmakers have not yet laid out their plan for income and sales taxes.

In her interview with The Star, Kelly said she wants lawmakers to approve a plan that includes reductions in property and Social Security taxes, while also considering the $250 one-time tax rebates she proposed on the campaign trail.

“I’m hoping that, given that the flat tax failed last year and they recognized that we’ve got to do something on tax relief, that they’ll come around and work with me this year,” Kelly said.

If lawmakers again leave Topeka without making changes, taxes are certain to emerge as a campaign talking point.

Senate President Ty Masterson, an Andover Republican, indicated that if Kelly doesn’t sign a flat tax bill, Republicans will paint the decision as an illustration of Democrats being unwilling to compromise.

“It is our hope that she will sign the bill and that senators who have built a career on saying they stand with taxpayers will vote accordingly,” Masterson said in a statement.

Holland, who is not running for reelection next year, said that even if Republicans are able to pass the flat tax, voters expect more substantial relief.

“If nothing additionally substantively gets done when it comes to tax I think voters may be scratching their heads and saying, you know, ‘was this was a failure on both parties to deliver,’” he said.