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GOP tax plans would increase taxes on low-wage Kansans, decrease taxes for high-income Kansans, report says
Topeka — Taxes will increase for low-wage Kansans and decrease for those with higher incomes under plans being considered by Republican state legislators, according to a Washington, D.C.-based think tank.
The Institute on Taxation and Economic Policy looked at the various proposals before the Legislature that essentially increase the state sales tax while ratcheting down the income tax and reducing deductions.
Currently, the state sales tax of 6.3 percent is scheduled to decrease to 5.7 percent on July 1. But Gov. Sam Brownback wants to keep the rate at 6.3 percent, saying that will stabilize the state budget and help buy down income tax rates.
A Senate GOP plan to keep the rate at 6.25 percent, while lowering income tax rates, would result in a tax increase for 60 percent of Kansans, making $60,000 per year or less, the ITEP analysis shows. Of that group, the largest percentage increase would be for those making $20,000 per year or less.
But those making more than $60,000 per year would realize a tax cut under the proposals. ITEP is a nonprofit, nonpartisan group. Its stated mission is to provide information on tax policies, tax fairness, government budgets and sound economic policy.