Legal battle brewing: Kansas AG and ACLU of Kansas discuss SB 180
6 July 2023
TOPEKA (KSNT) – Kansas is closing the fiscal year $26 million ahead of projections. The extra cash flow is prompting a renewed push for tax relief from some lawmakers. However, Democrats and Republicans could clash, once again, over which proposal works best.
Kansas Capitol Bureau spoke with Governor Laura Kelly in an interview Wednesday. Kelly said she’s eyeing a proposal similar to one she introduced last session.
“We’re going to sort of replay what we tried this past legislative session,” Kelly said. “I will propose another reasonable, generous tax cut program, so that we can get money back to Kansas taxpayers.”
This past legislative session, the governor’s proposal included cutting taxes on social security, property and groceries. She also proposed a one-time-tax rebate of at least $450 for Kansas taxpayers; an alternate proposal to Republicans’ single-rate income tax package.
Republicans tacked on their single-rate income tax of 5.15% to a tax package, which included the governor’s proposals. The move, effectively killed the legislation, as the governor refused to sign off on a ‘flat’ income tax. Top Democrats argued the ‘flat’ tax could be potentially damaging to state revenue.
“I’m not open to saying yes to a ‘flat tax’…what I am willing to sit down and talk with them about is looking at the package that I did propose, and are there some other things we can add to that,” Kelly said.
As both sides ready their proposals for next year, the governor and Republican leaders could bump heads over tax relief plans. Kansas House Speaker Dan Hawkins told Kansas Capitol Bureau that leadership plans to introduce a similar proposal next session as well.
“Truly, it’s just her saying I don’t want a single-rate tax no matter what… which, we knew that… we knew she didn’t want it, but we do! And, our people want it!,” Hawkins said in an interview in May. “We’re going to come back next year and we’re going to do the tax plan again… will it be exactly the same? We don’t know that until it comes out, but we will do… probably a tax plan that mirrors it a lot.”
On Wednesday, Republican leaders also released a statement on the state’s tax revenue surplus.
“It’s really unfortunate that the Kelly/Toland Administration vetoed the sustainable and comprehensive tax bill this session. What should have been a no-brainer with the surplus in tax revenue, tax cuts that would have helped all Kansans instead fell victim to petty politics. Rest assured, the legislature will bring back these cuts next session and passing them will be top priority.”
Kansas House Speaker Dan Hawkins (R-Wichita)
Kansas Senate President Ty Masterson, R-Andover, released the following statement on the June tax receipts.
“The revenue figures demonstrate yet again why the governor’s veto of the tax reduction package benefiting every Kansan was such a mistake. The Kelly/Toland Administration celebrating the government collecting more of the people’s money at the same time their policies are shrinking private sector jobs is indicative of why progressive tax policies and other left-wing ideas are doomed to fail in comparison. A rising tide lifts all boats, which is why we need broad tax reform that puts more money in the pockets of every Kansan while putting our state on a glidepath to economic growth. The governor will have another chance to match her rhetoric with results this January.”
Kansas Senate President Ty Masterson (R-Andover)
In a statement on Wednesday, the governor said she’s open to working with the Legislature to pass a fiscally responsible tax proposal.
“Come January, I am committed to partnering with legislators to get Kansans relief,” Kelly stated.