Kansas Gov. plans to eliminate state income tax and balance budget

The Governor was a bit more secretive about this item, eliminating the state income tax deduction for property taxes paid. The governor did not mention this when he introduced his plan, but it is in the plan.The Govenor's office said that came from the state Dept. of Revnue, but revenue officials said it was the Governor's plan.It would become irrelevant if income taxes are eliminated, but it will take a few years for that to happen. In the meantime, people would lose this deduction, and pay higher taxes.Being able to deduct the interest off your mortgage has always been a popular deduction, but the Governor of Kansas wants to eliminate it as a way of cutting income taxes.Kansas realtors are opposed to the move, saying it would hurt housing sales. They have created a calculator to help people see what this would cost them in taxes. Realtors point out that more than 300,000 Kansans would be affected by this move, and it would hit the middle class hardest. Realtors estimate the deduction saves homeowners an average of $300 per year.The Governor says the growth generated from lower income taxes, as well as tax breaks on everyone, will lessen the burden. The first proposal is probably the most controversial. This one involves keeping a sales tax that was set to expire this year. The sales tax was raised to make the budget balance in 2010.Many legislators are reluctant to go back on a promise to voters. Not letting the tax expire would also be a tax increase by default, and several legislators signed a no tax increase pledge that was promote by a conservative anti tax group.View the list »
Brownback trying to eliminate state income tax in Kansas

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Last year Kansas Gov. Sam Brownback, with the help of conservatives, pushed through massive income tax reductions. This year he plans to make even more cuts and has stated his goal of eliminating the income tax entirely in the state.

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The governor points to other states that have eliminated income tax and says Kansas will grow economically if income taxes are eliminated. Opponents say there is no guarantee the economy will grow, and they say this plan benefits the rich at the expense of the poor.

Eliminating income tax will cause a big shortfall in state revenues. To make up for the shortfall the Governor has a three-prong approach to balance the budget.

His plan involves keeping in place a sales tax that was set to expire, eliminating a tax deduction for interest on mortgages and ending the exemption for income taxes paid.

The plan has drawn some fire, but the Governor does have a super majority in both the House and Senate, so he should be able to get most of what he wants. State legislators plan to begin debating the items in earnest in the coming week.

Republicans have reservations about part of the plan, and Democrats say they will have some alternative plans. The governor has said he is willing to discuss ways the state can make up the shortfall. A part of that would be to make more cuts.

Here is a look at the three ways the Governor hopes to make up for money lost by cutting income taxes.

View the list
  • The first proposal is probably the most controversial. This one involves keeping a sales tax that was set to expire this year. The sales tax was raised to make the budget balance in 2010.Many legislators are reluctant to go back on a promise to voters. Not letting the tax expire would also be a tax increase by default, and several legislators signed a no tax increase pledge that was promote by a conservative anti tax group.
  • Being able to deduct the interest off your mortgage has always been a popular deduction, but the Governor of Kansas wants to eliminate it as a way of cutting income taxes.Kansas realtors are opposed to the move, saying it would hurt housing sales. They have created a calculator to help people see what this would cost them in taxes. Realtors point out that more than 300,000 Kansans would be affected by this move, and it would hit the middle class hardest. Realtors estimate the deduction saves homeowners an average of $300 per year.The Governor says the growth generated from lower income taxes, as well as tax breaks on everyone, will lessen the burden. 
  • The Governor was a bit more secretive about this item, eliminating the state income tax deduction for property taxes paid. The governor did not mention this when he introduced his plan, but it is in the plan.The Govenor's office said that came from the state Dept. of Revnue, but revenue officials said it was the Governor's plan.It would become irrelevant if income taxes are eliminated, but it will take a few years for that to happen. In the meantime, people would lose this deduction, and pay higher taxes.
View the list
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, Kansas Statehouse Examiner

James Jordan is a journalist with more than 20 years as reporter, editor and photographer. He has won numerous awards over the years for his writing. He has covered statehouse news in South Carolina, and in Kansas for the past 15 years. He knows some of the legislators personally, and has...

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