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________________________________________________________________________
*For Immediate Release: *
January 8, 2024
*Contact: *
Grace Hoge
[email protected]
Governor Kelly, Bipartisan Lawmakers Unveil
Tax Cut Plan
"~~Group of Conservative Lawmakers Join Governor Kelly to
Save Kansans $1B Over Three Years~~ "
*TOPEKA* – Today, on the first day of the 2024 legislative session, Governor Laura Kelly joined Republican State Senator John Doll and Rob Olson, Independent State Senator Dennis Pyle, and Senate Democratic Leader Dinah Sykes to unveil a comprehensive tax cut proposal that would save Kansans more than $1 billion over three years. Unlike the other tax plan being proposed this session, a single tax rate for all taxpayers, this bipartisan plan would cut taxes for every Kansan while maintaining the state’s strong fiscal standing.
"As Kansans feel the pain of rising costs, it’s clear that we need to cut taxes. This plan provides relief for middle-class Kansans, is fiscally responsible, and keeps seniors and families in their homes – which is why it’s garnered bipartisan support,” *Governor Laura Kelly said*. “The other tax proposal out there – the flat tax – does relatively little for the middle class. Kansans have seen how reckless tax experiments work out, and they don’t want to go back to the days of four-day school weeks, crumbling roads, and crippling debt.”
The plan:
*Cuts state property taxes for Kansas homeowners.*
The bipartisan tax plan exempts the first $100,000 in state property taxes for all Kansans homeowners. Once fully implemented, this proposal will save the Kansas homeowners around $100 million per year. 370,000 Kansas homeowners would pay less than $20 annually in state property tax.
“I congratulate Governor Kelly for including in her proposal raising the exemption for the 20 mill statewide school levy to $100,000 of appraised value,” *House Democratic Leader Vic Miller said*. “This is a great first step to providing long-overdue property tax relief to beleaguered Kansas homeowners.”
*Entirely eliminates state taxes on Social Security income.*
Kansas is currently one of eleven states that impose a state tax on Social Security benefits, resulting in seniors leaving the state in search of a lower tax burden. By eliminating the tax on Social Security income entirely, retired Kansans will save more than $525 million in the first five years of this plan.
“Kansans work hard to be able to retire and should be able to enjoy that time without worrying about how to make ends meet,” *said Senator Dennis Pyle, Kansas Senate District 1.* “There’s no reason for Kansas to remain a state that taxes its retirees. I’ve signed onto this plan because eliminating the tax on Social Security benefits is a commonsense way retired Kansans can stay close to family and not feel the need to move out of the state for tax relief.”
*Increases the standard deduction so Kansans pay less when filing their state income taxes.*
This plan increases the standard deduction that the vast majority of Kansans use to reduce their taxable income and overall tax bill. It raises the standard deduction for single Kansans from $3,500 to $5,000; for those with head of household filing status from $6,000 to $7,500; and for those married filing jointly from $8,000 to $10,000. This component of the plan will save Kansans over $200 million in three years.
“Working, middle-class Kansans deserve our support as they feel the pinch between their wages and the rising cost of living,” *said Senator Rob Olson, Kansas Senate District 23.* “By increasing the standard deduction, this bill lightens the tax burden on individuals and families while ensuring our budget stays balanced.”
*Immediately axes the state sales tax on groceries, diapers, and feminine hygiene products.*
This tax plan eliminates the state’s sales tax on groceries and ingredients by April 1 this year instead of waiting until 2025. It would also eliminate the state sales tax on diapers and feminine hygiene products.
“Kansans need us to deliver responsible tax relief that will help them afford their groceries and other necessities,” *said Representative Brandon Woodard, Kansas House District 108.* “The immediate elimination of the food sales tax is a commonsense plan that will put more money back into Kansans pockets now, instead of waiting until 2025.”
*Provides relief for working families in need of child care.*
Child care is a necessity for working parents. This tax cut package doubles the Child and Dependent Care Tax Credit that parents can claim to help pay for child and dependent care while they work or attend school. These tax credits are estimated to save Kansas families $18 million over three years.
“This is commonsense tax policy that will provide relief to all Kansas taxpayers. In particular, it will help more parents access affordable, high-quality child care,” *said Senate Democratic Leader Dinah Sykes*. “Child care is hard to find and hard to afford for too many Kansas families. That holds back moms and dads – and our economy. The child care tax credit included in this proposal is a win-win, helping employers attract better job candidates and ensuring all Kansans have the freedom to participate in our workforce.”
*Creates a back-to-school state sales tax holiday.*
Every August, Kansans spend a large amount of money on back-to-school shopping. To ease the pain of the additional but necessary purchases, this bipartisan plan provides tax relief on clothing, school supplies, computer software, and computers and computer supplies. This four-day tax-free holiday will save Kansans nearly $15 million in three years.
“Our students must have the tools necessary to succeed in the classroom and be productive members of society and our workforce,” *said Senator John Doll, Kansas Senate District 39.* “Creating the sales tax holiday on school supplies and goods ensures Kansas students are prepared for a new school year and all their future may hold.”
“Too many Kansans are feeling the effects of rising costs,” *said Representative Henry Helgerson, Kansas House District 83. *“It’s crucial that we pass responsible tax cuts to support hardworking Kansans and give them some much-needed relief.”
A copy of the bipartisan plan can be found here [ [link removed] ].
A copy of Governor Kelly’s remarks can be found here [ [link removed] ].
Here [ [link removed] ] is the estimated fiscal impact of the proposal.
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