24 January 2024
TOPEKA, Kan. (KSNT)- Kansas Republican leaders are sending their tax plan to the Governor’s desk with their signature.
In a rare move, GOP leaders held a “ceremonial signing” on Tuesday. This comes before democratic Governor Laura Kelly has made a decision on the proposal. A key feature of the tax package is a “single-rate” income tax, or “flat tax,” as some call it, of 5.25%.
“Kansans get it… the majority for sure… they get the reason… the need for it,” Senate President Ty Masterson (R-Andover) said.
However, the change in tax structure is the main issue for Democrats, who argue that state revenue will take a hit.
“Hopefully, the Governor will veto this … and we’ll be able to sustain this … because it’s going to put us underwater within five years,” Senate Minority Leader Dinah Sykes (D-Lenexa) said.
However, Republican leaders in the House and Senate are calling the tax package a “compromise.”
They’ve included some key parts of the Governor’s plan, like speeding up ‘axing’ the state food sales tax and eliminating the state tax on social security.
“The Senate Chamber wanted to take all sales tax off food … right? But, some compromise is you leave it on the local, so that’s what the Governor asked for,” Masterson said. “Social security… we kind of had an escalator in there. She wanted to take it completely off… we’ll take it completely off.”
Kelly, however, has been adamant about not signing a bill with a “flat tax.” She told the Kansas Capitol Bureau in a pre-session interview that she’s willing to have other tax conversations but will not sign a proposal that includes Republicans’ single-rate income tax.
Democrats have likened the bill to former Governor Sam Brownback’s failed tax experiment, which featured a “glide path to zero” among other tax cuts.
“Yes, there are some ways to offset that right now … but in five years … where are we going to find the funds? It’s going to be back on those low-income …”
With the Governor’s expected veto of the bill, Senate Republicans will need to find the votes needed to override.
“This is a near supermajority … if not, a *supermajority. And, so that needs to be pointed out to the general public… who’s blocking what?” Masterson said.
There are 27 votes needed to override the Governor’s veto in the Senate, and 84 votes are needed in the House.
The tax package passed the Senate 25-11 last week.
Four members of the Senate were not present for the vote, which includes two democrats; at least one has said they’re still “undecided” about the tax package.
“If she doesn’t sign it … then we’ll work toward an override …” Speaker Hawkins said.