Mon March 18, 2013
Kansas House And Senate Differ On Sales Tax
The Kansas House and Senate are working on two bills that would cut income taxes, but they are very different in one aspect.
The bill that passed the Senate would make permanent a temporary sales tax that's set to expire later this year. The House plan would let the sales tax expire as planned.
Senate Majority Leader Terry Bruce, a Republican from Hutchinson, says the sales tax wouldn't be a deal breaker.
“It’s a wide gap but we’ve seen bigger gaps before. These conferees, we know from experience, work well together,” says Bruce. “I think we all have the same vision in mind."
Keeping the sales tax intact helps balance the state budget, allowing the Senate's tax plan to lower income tax rates faster. The House plan would lower rates more slowly, and only if the state economy grows at a certain rate.
Democrats have argued that the tax plans are unfair to lower-income Kansans and could lead to budget deficits in the coming years. The Kansas House could debate that chamber's version of a tax plan this week.