Latest news with #SenateBill269
Forbes
18-04-2025
- Business
- Forbes
Major Income Tax Cuts Enacted And Advanced In Slew Of GOP-Run States
Kansas state capitol in Topeka Lawmakers in multiple states have passed significant income tax rate cuts in recent weeks. Mississippi lawmakers and Governor Tate Reeves (R) enacted legislation in March that will phase out the Magnolia State's 4% income tax over time based on revenue triggers. Shortly thereafter, Kansas lawmakers followed suit by overriding a gubernatorial veto to enact income tax relief that moves the state tax code to a lower, flat rate. Kansas Senate President Ty Masterson (R) and Speaker Dan Hawkins (R) led the charge for Senate Bill 269, legislation enacted this week that will move Kansas from a progressive income tax code with a top rate of 5.58% to a 4% single rate income tax. Kansas lawmakers passed this income tax cut at the end of March and Governor Laura Kelly (D) vetoed it on April 10. On April 15, Kansas lawmakers enacted SB 269 by voting to override Governor Kelly's veto. SB 269 includes a revenue trigger resulting permanent rate cuts whenever a stipulated level of revenue collection is exceeded. Under 269, all surplus revenue collections exceeding growth in regional CPI inflation will be returned to taxpayers in the form of permanent income tax cuts until the rate falls to 4%. The tax reform package championed by Masterson and Hawkins also cuts the state corporate tax rate to 4% based on revenue triggers. Many in South Carolina hope their state is the next to enact rate-reducing income tax reform. Speaker Murrell Smith (R) and his colleagues introduced legislation in March to move the state from a progressive income tax with a top rate of 6.2%, to a flat 3.99% income tax. An economic impact study recently released by the Palmetto Promise Institute and the Buckeye Institute concluded that moving to a lower, flatter rate would come with many benefits for South Carolina residents and the state's economy. 'Broadening the base and moving to a flat rate of 3.99% will result in South Carolina's economy adding 1,000 jobs in 2026 and an average of 1,000 additional jobs each year between 2027 and 2030,' noted Oran Smith, senior fellow at the Palmetto Promise Institute. 'South Carolina's GDP will grow by $240 million in 2026 and average $250 million over the next 5 years, if the tax rate stays at 3.99%. Families will buy more because, they will have more money to purchase goods, and save and invest over $100 million annually each year over the next five years. 'Dynamic economic modeling, which considers how people and businesses respond to policy changes, shows that this tax plan will make South Carolina a more prosperous state and poised to compete with neighboring states that have already enacted tax policy reform over the past few years,' Smith added. 'The scenario below models collapsing all current personal income tax brackets in South Carolina into a single bracket with a flat rate of 3.99%. Table I below presents the dynamic effects of this scenario. Under this scenario, South Carolina's economic output (GDP) would increase by $240 million (2024 dollars) in 2026, with investment increasing by $110 million and consumer spending increasing by $70 million in the same year. Ultimately, the number of jobs for 2026 would be expected to increase by 1,000.' At the March 18 press conference announcing the Speaker's tax reform proposal, Governor Henry McMaster (R) and South Carolina Senate leaders announced that they, like Speaker Smith and his colleagues, see income tax rate reduction as a top priority to pass before adjourning session in May. The South Carolina House Ways & Means Committee will hold a hearing next week to take up the Speaker's tax reform bill and consider amendments. If they're successful, South Carolina will soon have a lower rate than neighboring Georgia and will be on more competitive footing relative to North Carolina. Underscoring the heightened level of state tax competition, North Carolina lawmakers took action this week to increase their fiscal policy advantage over South Carolina, Georgia, and other states. The North Carolina Senate passed a new budget on April 17 that would take the state's 4.25% flat income tax down to 1.99%, provided certain revenue triggers are met. Under current law, North Carolina's income tax rate will fall to 3.99% and possibly as low as 2.49% so long as revenue triggers are met. Like their counterparts in North Carolina, the Oklahoma Senate approved income tax relief this week. On April 14, the Oklahoma Senate passed House Bill 1539, legislation that phases out the state income tax entirely over time based on revenue triggers being met. Oklahoma currently has a progressive income tax with a top rate of 4.5%. If the Oklahoma House votes to concur with the changes made by the state senate, the bill will go to Governor Kevin Stitt (R) for his signature. Governor Stitt has long been a champion of phasing out Oklahoma's income tax. 'There are nine states with no state penalty on work,' said Oklahoma Sen. Micheal Bergstrom (R-Adair). 'Consistently, they're experiencing better growth and opportunity, and this is not a surprise. When you don't penalize work and job creation in the form of state income taxes, your citizens are better positioned to pursue opportunity for themselves and to expand opportunity for others.' National media outlets have published multiple articles in recent days and weeks alleging that Republican members of Congress are warming up to the prospect of allowing the top marginal federal income tax rate to go up for filers whose income exceeds some amount. On April 17, however, Kimberley Strassel reported in the Wall Street Journal that the push to raise the top marginal income tax rate is being led by certain White House staffers, which Larry Kudlow has also reported. While some advisers may be trying to convince the President to break a well documented campaign promise by raising the top federal income tax rate, Republican state lawmakers across the country are going in the other direction, taking action to reduce top rates, move to flatter income tax codes, and ultimately end state taxation of household earnings.
Yahoo
10-04-2025
- Business
- Yahoo
Kansas governor vetoes flat tax, restriction on local lawsuits, anti-abortion videos in schools
Gov. Laura Kelly on Jan. 15, 2025, prepares to enter the Kansas House chamber to deliver her State of the State address Wednesday at the Capitol. (Sherman Smith/Kansas Reflector) TOPEKA — Gov. Laura Kelly's flurry of last-minute vetoes Wednesday night aimed to eliminate legislation that would trigger income tax cuts that favor higher-wage earners and corporations, empower the attorney general to block local government from suing big businesses, and force school children to watch video of developing fetuses. Those vetoes, along with ones involving health care overreach and line items in the state budget, set the scene for the Legislature's return Thursday. GOP leaders have promised to override a number of the governor's vetoes, a process that requires the support of two-thirds of both chambers. The Democratic governor said Senate Bill 269 would 'put the state back on the path toward the failed' tax experiment of former Gov. Sam Brownback. The legislation would lower the corporate tax rate and flatten individual income tax brackets over time, based on how much money is in the state's rainy day fund. The tax cuts could amount to $1.3 billion annually, Kelly said, while the state is already forecast to have a budget shortfall within three years. 'I have proposed and supported tax cuts when they are implemented responsibly and benefit the people of Kansas, especially those who need it most,' Kelly said. 'This bill ignores Kansas families at a time of rising costs and inflation in favor of hundreds of millions of dollars in giveaways to corporations and the wealthy.' In a joint statement, Senate President Ty Masterson, of Andover, and House Speaker Dan Hawkins, of Wichita, said 'Republicans stand with taxpayers' and would work to override the veto. The governor said she vetoed House Bill 2228 because she is 'a strong supporter of local control.' The legislation would restrict cities and counties from entering into lawsuits with contingency agreements, in which attorneys work for free in exchange for a cut of the settlement if they win. The local government would have to hold a public meeting on the nature of the lawsuit and receive the attorney general's approval. The bill was a response to lawsuits like the one Ford County filed late last year that alleges ExxonMobil, Chevron and the American Chemistry Council of 'a decades-long campaign of fraud and deception' about recycling plastics. HB 2228 would retroactively apply to July 1, 2024. During a Senate debate on the bill last month, Sen. Kellie Warren, a Leawood Republican, said the bill's restrictions on such lawsuits 'continues our strong tradition here in Kansas of being pro business and getting things done for our state.' 'More and more frequently, we've seen local government joining class action lawsuits for issues such as projects attributed to climate change, data privacy breaches, vehicle theft and other kind of piecemeal litigation that's really a broad statewide level issue,' Warren said. Sen. Ethan Corson, a Fairway Democrat, said Attorney General Kris Kobach 'just didn't like the substance' of several lawsuits that had been filed. 'This is really an impediment upon local control, gives the AG an ideological veto and really attempts to solve a problem that doesn't exist,' Corson said. Kelly also vetoed House Bill 2382, which merged legislation that would provide for a pay raise for Kansas State Board of Education members with an anti-abortion policy that requires children as young as 5 to watch a high-definition ultrasound of a fetus or a video that shows early human fetal development. The governor said the bill was 'convoluted, manipulative and wrong.' 'This bill fails to establish standards to ensure the information included in the program is evidence-based,' Kelly said. 'But it is not surprising, as the goal of this bill is not to educate developing and impressionable young minds — it is to push a specific agenda without proper research to back it up. 'As policy makers and parents, we should demand that our children are provided with high-quality, relevant, researched, and age-appropriate educational experiences free from ideological prejudice.' The governor also vetoed House Bill 2028, which alters the cost of hunting and fishing licenses and restricts out-of-state residents from hunting migratory waterfowl on public lands, and Senate Bill 18, which authorizes a Hunter Nation distinctive license plate. Kelly also allowed two bills to become law without her signature: House Bill 2056, which Kelly said 'cleans up some of the ambiguity and uncertainty regarding the crime of impersonating an election official,' but still leaves uncertainty about what actions are prohibited. House Bill 2263, which designates memorial highways, including a portion of Kansas Highway 5 for former Rep. Marvin S. Robinson.
Yahoo
10-04-2025
- Politics
- Yahoo
Gov. Kelly vetoes 7 bills, allows some to become law without signature
TOPEKA (KSNT) – Governor Laura Kelly vetoed several bills on April 9, while allowing several to become law without her signature. Kelly issued a news release Wednesday, April 9 listing seven bills that she vetoed and three bills that are able to become law without her signature. Kansas lawmakers in the Senate and House must now acquire two-thirds majorities to override the governor's vetoes. Future income tax and privilege tax rate decreases be contingent on exceeding revenue estimates and keeping a certain amount in the budget stabilization fund. 'I have proposed and supported tax cuts when they are implemented responsibly and benefit the people of Kansas, especially those who need it most. This bill ignores Kansas families at a time of rising costs and inflation in favor of hundreds of millions of dollars in giveaways to corporations and the wealthy. Make no mistake, should this bill become law, it will put the state back on the path toward the failed Brownback tax experiment: the four-day school weeks, the budget cuts, and the crumbling roads and bridges that came with it. The income tax cuts made possible by this bill could cost the state up to $1.3 billion annually. The triggers for those tax cuts are such that as soon as the state sees an uptick in revenue, taxes will be automatically cut regardless of any other economic factors or policy and budgetary considerations. We've been down this road before, and we can't afford to go back to failed tax experiments and policies that will stifle economic opportunity for everyday Kansans and thwart efforts to ensure a sustainable water supply essential to our rural communities. I sincerely hope the Legislature listens to the people of Kansas and rethinks priorities on tax policy. Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto Senate Bill 269.' Veto message from Kelly regarding SB 269 Requiring political subdivisions to hold an open meeting to discuss a contingency fee contract for legal services before such contract can be approved, and require the attorney general to approve such contracts. 'As a strong supporter of local control, I believe that decisions around legal services should be handled by the local elected leaders who are on the ground and best know their communities' needs. I do also believe there are times when the attorney general must work to safeguard the state's interest in issues that cannot be adequately litigated by a local entity on behalf of the entire state. There should be additional work on this legislation to develop clearer language around the attorney general's engagement. Also, the retroactivity language should be removed to eliminate the perception that this bill is targeted at a specific action rather than sound policy. Until those issues are addressed, I cannot sign this legislation. Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto Senate Substitute for House Bill 2228.' Veto message from Kelly regarding Senate Substitute for HB 2228 Man charged in Seneca priest's death wrote about religion, more to local newspaper Providing for child support orders for unborn children from the date of conception, including the direct medical and pregnancy-related expenses of the mother, as a factor in child support orders and providing for an income tax exemption for unborn children. 'At first glance, this bill may appear to be a proposal to support pregnant women and families. However, this bill is yet another attempt by special interest groups and extremist lawmakers to ignore the will of Kansans and insert themselves into the lives of those making private medical decisions. It is a place where this Legislature has become all too comfortable — particularly for those who espouse freedom from government overreach. The motives behind this bill are clear. Instead of helping pregnant women and families, the Legislature chose to pass a bill that connects the issue to a woman's constitutional rights. This bill is a dismissal of the will of the majority of Kansans who voted overwhelmingly in 2022 to keep politicians out of the private medical decisions made between a woman and her doctor. Furthermore, the provisions of this bill are questionable, and it is surprising it has been put forward. There are legitimate worries surrounding its implications, and I encourage special interest groups and their legislative supporters to reflect on the broader impact of their actions. Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto House Bill 2062.' Veto message from Kelly regarding HB 2062 Require legislative approval before any state agency seeking or implementing a public assistance program waiver of other authorization from the federal government that expands eligibility for any public assistance program, increases cost to the state or makes certain changes in services for people with intellectual or developmental disabilities and authorizing the legislative coordination council to act on agency requests when legislature is not in session. 'Senate Substitute for House Bill 2240 is an unconstitutional overreach by the Legislature into the executive branch attempting to create an unlawful administration of the state's Medicaid program with the legislative branch. Our doctrine of independent governmental branches is firmly entrenched in the United States and Kansas constitutional law and significant intrusion by one branch into the duties of another has been held to be unlawful. There is little question in my mind that this represents such an intrusion. Additionally, we estimate that the process established in this bill would require hundreds of hours of taxpayer-funded work and research by legislative staff to implement even the most basic of changes. Since the federal government issues various administrative changes almost daily, it jeopardizes the very functioning of the underlying programs. Thousands of Kansans rely on these programs, including children, pregnant women, individuals with disabilities, and low-income seniors. This bill and the subsequent backlog that it would create threatens food and medical assistance benefits for our most vulnerable Kansans at a time of increased inflation and overall financial uncertainty. Kansas already has very strict eligibility rules and significant verification requirements for these programs. For these reasons and many more, I cannot and will not support this bill. Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto Senate Substitute for House Bill 2240.' Veto message from Kelly regarding Senate Substitute for HB 2240 Require school districts to include a fetal development presentation as part of any human growth, human development or human sexuality curriculum. Also authorize the state board of education to establish the rate of compensation for members of the board. 'This bill is convoluted, manipulative, and wrong for a number of reasons. It undermines the authority of the Kansas State Board of Education and local school boards, who are vested with the duty and responsibility to set and enforce curricula for our schools, no matter the subject. The Board, teachers, and administrators put in significant effort to create curricula and lesson plans. This legislation undermines their autonomy and replaces the expertise of trained professionals with the desires of special interest groups and the politicians that enable them. Additionally, this bill fails to establish standards to ensure the information included in the program is evidence-based. But it is not surprising, as the goal of this bill is not to educate developing and impressionable young minds – it is to push a specific agenda without proper research to back it up. As policy makers and parents, we should demand that our children are provided with high-quality, relevant, researched, and age-appropriate educational experiences free from ideological prejudice. Senate Substitute for House Bill 2382 falls short of that goal. For these reasons, I cannot and will not support this bill. Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto Senate Substitute for House Bill 2382.' Veto message from Kelly regarding Senate Substitute for HB 2382 Revive a law that provided discounted hunting and fishing licenses for anyone 65 years and older; changing the amount charged for lifetime hunting and fishing licenses for children five-years-old and younger to $300 and people ages six to 15 to $400. The bill would also prohibit non-residents form hunting migratory waterfowl on public lands during hunting season except on Sundays, Mondays and Tuesdays; raise certain hunting fees and require the Kansas Department of Wildlife and Parks (KDWP) to report to the house and senate committees on agriculture and natural resources on the impact of limiting out of state waterfowl hunters. 'While this bill touches on a variety of hunting and fishing issues, I am particularly concerned with how this bill severely limits non-Kansas residents from hunting waterfowl on public lands. More specifically, this prohibition could have a detrimental impact on the prosperity of our communities and businesses by denying the many positive outcomes from the economic activity generated by non-residents coming into our state for hunting purposes. I will not support a bill that could harm the economic vitality of rural Kansas communities across the state. Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto House Bill 2028.' Veto message from Kelly regarding HB 2028 Topeka crews see, repair 21,000 more potholes since 2021 Establish the Kansas campus restoration act to address deferred maintenance and demolition of postsecondary educational institution facilities, establish the Kansas campus restoration fund in the state treasury and authorize certain transfers from the state general fund to such fund. 'While the issuance of specialty state license plates for nonprofit organizations rarely produces controversy, Senate Bill 18 was amended to funnel revenue generated by the royalties from these license plates to a 501(c)(4) entity that engages in political and state legislative campaigns. Official government-issued license plates should not be used by organizations to generate revenue that can be redirected by organizations for political purposes. Individuals are free to donate to any candidate or cause they choose, but using government-issued license plates for that purpose creates a dangerous precedent and does not serve a valid, justifiable public service. Simply put, it doesn't pass the smell test, which is why I cannot and will not support it. Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto Senate Bill 18.' Veto message from Kelly regarding SB 18 Require specific intent as an element of the crime of false representation of an election official; require any person nominated for an elected office to accept the nomination by signing a notarized statement of acceptance and restrict the number of nominations a person may accept to one per election cycle. 'While this bill cleans up some of the ambiguity and uncertainty regarding the crime of impersonating an election official, it is still unclear about what actions are prohibited. It uses the term 'engaging in conduct' but only provides one specific example, making it still difficult to discern what is allowed and what could lead to criminal charges. Kansans should be given every opportunity to exercise their constitutional right to vote, and I have concerns this bill would have a chilling effect on organizations that support voter engagement. This is an ambiguity either the courts or the Legislature need to fix. This bill will become law without my signature, and I hope in the future the Legislature can provide greater clarity to protect Kansans' constitutional right to vote.' Statement from Kelly regarding HB 2056 Enact the right to try for individualized treatments act to permit a manufacturer to make an individualized investigative treatment available to a requesting patient. 'This bill gives Kansans with debilitating disease the option to make choices about their medical care. Now I think it's time for the Legislature to finally legalize medical Marijuana, giving the Kansans suffering from chronic pain or Post Traumatic Stress Disorder, and children suffering with Dravet's Syndrome (epilepsy) the choice of the treatment they and their doctors determine best suits their needs.' Statement from Kelly regarding SB 250 Kelly also allowed House Bill 2263 to become law without her signature. For more Capitol Bureau news, click here. Keep up with the latest breaking news in northeast Kansas by downloading our mobile app and by signing up for our news email alerts. Sign up for our Storm Track Weather app by clicking here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
27-03-2025
- Business
- Yahoo
Kansas House passes bill to trigger income tax cuts as long as state has surplus funds
Rep. Stephanie Clayton, an Overland Park Democrat, and Rep. Jerry Stogsdill, a Prairie Village Democrat, appear during a March 24, 2025, session of the House. On Wednesday, they voiced concerns with a plan to automatically lower income tax rates based on surplus funds. (Grace Hills/Kansas Reflector) TOPEKA — Personal and corporate income taxes could see major breaks under Republican-led legislation that advanced Wednesday out of the Kansas House, but Democrats warned of repeating past mistakes. Senate Bill 269, also known as 'the income tax trigger bill,' would reduce the individual and corporate income tax rates to as low as 4%. Bank rates could drop as low as 2.6%. However, the cuts are contingent on maintaining the state's budget stabilization fund, also known as the rainy day fund. House lawmakers advanced the bill Wednesday mostly along party lines in an 84-38 vote. The Senate still needs to give its stamp of approval in the two remaining days of the regular session. No Republicans defended the bill, but Democrats called it 'a ratchet' and 'dangerous.' Rep. Stephanie Sawyer Clayton, an Overland Park Democrat, argued the House was the final stopgap between 'what is fairly dangerous tax policy' and constituents. The cuts can only go into effect if the state budget stabilization fund maintains a 15% balance. Right now, the fund sits at around an 18% balance, or $1.75 billion. Anytime the amount of state income tax collected exceeds the 15% balance threshold, as determined by the state budget director, an income tax rate 'buydown' would be triggered under the law, Smith said. Legislative staff couldn't estimate the exact financial impact of such a policy change. The changes would go into effect in 2025. The budget director would determine by Aug. 15 whether the most recent fiscal year's total State General Fund tax receipts exceeded the previous fiscal year's amount, adjusted for inflation. State personal income tax rates currently range from 5.2% to 5.58%, according to the Kansas Department of Revenue. Corporations solely in Kansas are taxed at 4% of their net income plus a 3% surtax on income above $50,000. Corporations with income in Kansas and outside of it are subject to rates based on sales, property and payroll. Under SB 269, if receipts are greater than the previous year's inflation-adjusted amount, the director of the secretary of revenue would calculate tax rate reductions, starting with individual income taxes. Once individual rates in both the lower and higher tax brackets reach 4%, rate reductions for corporations and financial institutions would be triggered. Reductions would continue until the combined rate for corporations reaches 4%, the combined rate for banks reaches 2.6% and the combined rate for other financial institutions reaches 2.62%. Rep. Tom Sawyer, a Wichita Democrat, said the cuts put the state in a difficult situation. He said the policy takes all of the state's excess income tax revenue and transforms it into a flat income tax, leaving no additional revenue to provide property tax relief. 'I have a problem with the whole ratchet situation,' Sawyer said. He added that special education funding hasn't been at its statutorily mandated level since 2010, and achieving full funding will be 'very difficult' under the proposed cuts. When — not if — a recession hits, Sawyer said, the hole left behind by income tax reductions will be much more difficult to fill. 'Those of us who were here in 2013, 2014, 2015 and 2016 that had to deal with (trying) to dig ourselves out of a deep hole in the budget know what that's like,' he said. The cuts are reminiscent of former Gov. Sam Brownback's tax experiment that gave hundreds of millions in tax cuts to corporations and 'bankrupted' the state, Rep. Jerry Stogsdill, a Prairie Village Democrat, told Kansas Reflector. However, Brownback's cuts were not contingent on the state's surplus tax revenues. Democrats also have challenged whether Republicans are going to be able to muster meaningful property tax relief legislation, a campaign-trail promise from both parties. One of those property tax relief efforts passed the House before the income tax bill. Senate Bill 36 eliminates the statewide levy of 1 mills for the state education building fund and the .5 mills levy for the state institution building fund. If implemented, the gap left behind in those two funds would be replaced with State General Fund dollars. In fiscal year 2027, which begins June 2026, the state education building fund would receive about $56 million and the institutional building fund would receive about $25 million from the State General Fund. SB 296 originally had to do with pending tax appeals fees, but during negotiations, the House inserted the contents of House Bill 2318, which contained the cuts.
