Kansas House Bill HB2107

Kansas 2023-2024 Regular Session

• Introduced: 1/19/23
• Refer: 1/19/23
• Failed: 4/30/24

Caption

Increasing the income limit to qualify for the income tax subtraction modification for social security income.

Impact

The passage of HB2107 would significantly alter Kansas tax law concerning the treatment of Social Security income. The amendment is expected to directly affect many retired individuals whose income levels fall within the newly defined limits, providing them with greater disposable income. By broadening the eligibility for tax modifications, the state acknowledges the financial challenges faced by retirees, especially in a time of inflation and rising living costs.

Summary

House Bill 2107 aims to amend the Kansas income tax law, particularly in its approach to the taxation of Social Security income. The proposed legislation increases the income threshold at which taxpayers qualify for a subtraction modification, thereby exempting a more substantial portion of Social Security benefits from state income tax. This change is designed to relieve the tax burden on seniors and retirees, enhancing their financial security in retirement by allowing them to retain more of their income.

Contention

However, the bill has not been without controversy. Critics argue that while the intent to aid retirees is noble, such exemptions could reduce state revenue, impacting funding for public services. The discussions surrounding the bill reflect a broader concern regarding tax fairness and the balance between supporting the elderly and maintaining robust public funds that serve the entire community. Opponents may contend this bill perpetuates a system that favors specific demographics at the expense of others.