The Kansas House has rejected a bill that would have relied mostly on a sales tax increase to fill a $400 million budget gap. Republican Representative Gene Suellentrop (SULLEN-trop) said the sales tax hike could help cure the budget troubles while keeping the state on the path of reducing income taxes.
“If we can make an adjustment to one rate upwards, it continues on our progression to cut tax rates for all,” says Suellentrop.
An amendment to the bill would have reversed some business tax cuts passed in 2012. Democratic Representative Jim Ward argued in favor of rolling back those tax breaks, which allowed 330,000 business owners and farmers to stop paying income taxes.
“People and businesses who use services and demand quality from our state are paying no state income tax to help fix the problem,” says Ward.
The amendment failed, as did the overall tax bill. Lawmakers will return to work Monday to try and craft a new tax plan.