House Republicans advance tax overhaul; entire Kansas delegation supports it

The Capitol is seen in Washington, Wednesday, Nov. 15, 2017, as Republicans works on reshaping the tax bill. ( AP Photo/Jose Luis Magana)

Republicans in the U.S. House, including all four members from Kansas, voted Thursday to advance a tax overhaul bill that supporters say will stimulate the economy, but critics say is a giveaway for corporations and wealthy individuals.

The 227-205 vote, which fell largely along party lines, represents a major step toward fulfilling one of the GOP’s biggest campaign promises, although it remains to be seen whether a similar bill can pass the more closely divided U.S. Senate.

“As a CPA and a member of the House Ways and Means Committee, reforming our tax code has been a priority of mine during my entire service here in Congress,” Rep. Lynn Jenkins, R-Topeka, said in a speech on the floor of the House. “Our current tax code is broken, and I’ve heard from thousands of Kansans in my district who are frustrated with the status quo.”

Other members of the Kansas delegation in the House — Reps. Kevin Yoder, of Overland Park, Roger Marshall, of Great Bend, and Ron Estes, of Wichita — all Republicans, have issued statements in recent weeks indicating they intended to support the tax bill.

The bill contains several provisions that critics have said are similar to the state-level tax policies that Republican Gov. Sam Brownback championed in 2012, and which the GOP-dominated Kansas Legislature largely repealed this year, overriding Brownback’s veto.

U.S. Rep. Lynn Jenkins, R-Topeka, speaks on the floor of the House in favor of a Republican-backed overhaul of the federal income tax code.

Among other things, it would reduce the number of tax brackets and lower rates across the board. It would also greatly reduce federal taxes on income from pass-through entities such as limited liability companies, partnerships and sole proprietorships.

It would also increase the standard deduction to $12,200 for individuals and $24,400 for married couples filing jointly.

At the same time, however, it would reduce or eliminate many itemized deductions that have become popular over the years, including deductions for interest paid on student loans, or the money teachers pay out of their own pockets buying supplies for their classrooms.

Supporters of the bill say the net effect of those changes would be a tax cut across all income categories and a simplification of the tax code so people won’t have to maintain records and receipts in order to take advantage of deductions.

But others worry about the impact those changes could have beyond the tax code.

During a meeting of the Kansas Board of Regents Wednesday in Wichita, Daniel Barwick, president of Independence Community College, said there was concern throughout the higher education community about the impact the House bill could have on colleges, universities and students.

“While tax reform is desirable, the country cannot afford to make financing community colleges more difficult,” Barwick said.

Among other things, Barwick said, colleges and universities across the country are concerned that raising the standard deduction will remove the financial incentive that middle-income people have to make charitable contributions.

He also said removing the tax deductibility of student loan interest and changes the bill makes to various tuition tax credit programs will effectively raise the cost of college education for many people, particularly older, nontraditional students who rely on community colleges to access programs and training needed to further their careers.

The bill also would make the free or reduced tuition that many institutions offer to employees, their dependents and graduate teaching assistants a taxable benefit, meaning people who take advantage of those benefits would have to pay taxes on them, just as if they were a form of income. That would also apply to educational benefits that other employers offer their workers.

“Thousands of community college students, who typically are older than traditional college age students and have jobs, rely on this provision, which boosts student retention and completion. Once again, retraining opportunities are being eliminated,” Barwick said.

A spokesman in Jenkins’ office said Wednesday that Jenkins had discussed those issues with higher education officials and that she believes the issues will be resolved before a final bill is signed into law.