KEPC Friday Update

Here’s a quick update of some rapid-fire developments at the Kansas Statehouse this afternoon:

Senators introduce jobs package

Seventeen Republican Senators, including that chamber’s leadership, announced two major tax proposals designed to attract new jobs to the state.

For manufacturers that are new to the state and employ ten or more people, an optional single-factor income tax would be available.  These businesses would only pay income tax on the portion of their sales that occur within Kansas.  Sales outside of Kansas would not be subject to income tax.  Current Kansas corporate income tax is based on three factors:  Kansas payroll, property owned in Kansas, and sales in Kansas.

That bill is Senate Bill 457.

The second tax proposal allows bioscience companies relocating to Kansas to pay no income tax.  The bill has a five-year sunset, so that results can be evaluated.

That bill is Senate bill 458.

Hearings are scheduled for the Senate Assessment and Taxation Committee Monday morning at 10:30.

 

Coalition to protect earned income tax credit announced

Meanwhile, a group called the Partnership to Preserve the Earned Income Tax Credit, has announced itself.  It will hold a news conference Monday at 10 a.m. in Room 144-South of the Statehouse.

The Earned Income Tax Credit is claimed in individual income tax returns by lower-income workers.  It’s designed to offset sales and property taxes.  In Kansas, 90 percent of EITC dollars go to families with children.

The credit is eliminated in the Governor’s tax proposal and is slashed dramatically in the House Republican tax proposal, which is scheduled to be debated Monday.

Recall that the Kansas House of Representatives plans to debate the House Leadership income tax cut proposal Monday.  Late this afternoon, the schedule was announced and the bill, House Substitute for Senate Bill 177, was on the list for debate.

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