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Archive for Monday, April 30, 2012

Lawmakers struggling with effects of income tax elimination on state budget

April 30, 2012

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— Kansas legislators are still trying to pin down how a compromise plan for cutting income and sales taxes will affect the state budget.

Resistance to the proposal appeared to be hardening Monday among Democrats and some Republicans who already were skeptical.

But Gov. Sam Brownback told The Associated Press that he's still confident that the tax plan won't cause major budget problems.

The plan would cut individual income tax rates, phase out income taxes for 191,000 businesses and reduce the sales tax to 5.7 percent in July 2013 from its current 6.3 percent. Eventually, the tax cuts are expected to be worth $500 million a year.

The proposal was drafted by House and Senate negotiators last week. They were scheduled to reconvene Monday afternoon to review numbers.

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