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Kansas Senate Committee Leader Outlines Tax Hike Plan

Kansas Statehouse dome (Photo by J. Schafer)

TOPEKA, Kan. (AP) — A Kansas Senate committee's leader has outlined proposals to raise taxes by $470 million annually to eliminate a projected budget deficit.  The plan, from Assessment and Taxation Committee Chairman Les Donovan, would eliminate an income tax break for business owners and farmers enacted in 2012.  Donovan's plan also would increase the state's sales tax to 6.5 percent from 6.15 percent, though the Wichita Republican would lower the tax on food to 6 percent.  His plan also would increase property taxes, tobacco and alcohol taxes and the state's gasoline tax.  The tax break for farmers and business owners exempted their profits from personal income taxes. Donovan would instead create an income tax credit equal to 1 percent of their payrolls.  The Senate committee expects to debate the plan Wednesday.


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