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Negotiators Reach Tax Compromise, But it Fails in the Kansas House

Tax negotiators meeting at the Statehouse. (Photo by Stephen Koranda)

UPDATE - This tax proposal failed in the Kansas House on a 3-108 vote. Work on a tax compromise will continue Thursday night and Friday morning.

Below is the original version of the story:

Kansas House and Senate negotiators have reached a preliminary tax compromise to close a budget gap. It would raise the sales tax and cigarette taxes while reducing tax deductions. The bill would raise around $430 million next fiscal year.
The House Tax Committee chairman, Republican Marvin Kleeb, says he isn’t sure the bill will pass, but it’s a starting point.

“We need to have members get up and speak their mind and let us know where they stand, what they like and don’t like so when we come back again we’re able to craft another solution to propose,” says Kleeb.
The plan freezes personal income tax rates for the next three years, cancelling some scheduled reductions.
The legislation would add taxes on one type of business income that's currently exempted. The proposal leaves other business income tax cuts in place. 
 The Kansas House is planning to debate the bill later today (THUR).

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