Brownback Signs Tax Reform Bill

(AP) – Kansas Gov. Sam Brownback has signed massive cuts in state income taxes into law.

Brownback signed the bill during a Statehouse ceremony Tuesday.

A contentious debate continues about whether the cuts will usher in economic prosperity or create massive budget problems.

The law will cut individual income tax rates for 2013 and eliminate income taxes for the owners of 191,000 businesses.

Coupled with a sales tax reduction already scheduled for July 2013, the income tax cuts would provide $231 million in tax relief for the fiscal year beginning July 1. The annual figure would grow to $934 million after six years.

A forecast from the Legislature’s research staff shows that a budget shortfall would emerge by July 2014 and, if left unchecked, grow to nearly $2.5 billion by July 2018.

One Response

  1. Reblogged this on KC Education Enterprise.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: