TOPEKA — Assessments by the Kansas budget director and an independent tax policy institute Monday showed the flat tax proposal by the Kansas Chamber would reduce the state budget by $1.5 billion per year and primarily benefit the state’s highest wage earners.
The Kansas Chamber, which wields substantial influence in the Statehouse, introduced a plan setting an individual income tax rate of 5% for annual income above $15,000. Under current law, the state’s graduated individual income tax rates stand at 3.1% for income under $15,000, 5.25% for income between $15,000 and $30,000 and 5.7% for income above $30,000. The income amounts are doubled for couples filing jointly.
In addition, the Kansas Chambers proposal, introduced in House Bill 2061 and Senate Bill 61, would establish a 5% corporation tax rate on taxable income. The current assessments on corporate income in Kansas: 4% on taxable income with a 3% surtax on taxable income in excess of $50,000. The bill also would cut by more than 50% the surtax rate for banks, trusts and savings and loan associations.
