Kansas House to Consider Sales Tax Hike and Closing Small Biz LLC Exemption

. (AP) – A Kansas House committee has advanced a plan for balancing the state budget that increases the sales tax and reverses one of Republican Gov. Sam Brownback’s key economic policies.

The Taxation Committee voted 8-6 Tuesday to send a bill to the House for debate without a recommendation on whether members should pass it.

The bill would narrow a tax break enacted in 2012 at Brownback’s urging. The state exempted the profits of more than 330,000 business owners and farmers from income taxes.

The committee’s plan would raise $101 million during the fiscal year beginning July 1 by taxing those profits again.

The plan also would boost the sales tax to 6.45 percent from 6.15 percent.

Lawmakers must close a projected $406 million budget shortfall for the next fiscal year.

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