Providing for additional income tax rate brackets.
Impact
The implementation of HB 2445 could significantly alter the state's revenue system by increasing the income tax from wealthier segments of the population. Proponents of the bill argue that a more progressive tax system can enhance state funds allocated for public services such as education, healthcare, and infrastructure, which disproportionately benefit lower-income residents. However, opponents may argue that changing tax brackets could deter high earners from residing or investing in the state, potentially leading to economic ramifications.
Summary
House Bill 2445 seeks to introduce additional income tax rate brackets in order to create a more progressive taxation system. The bill aims to adjust the existing income tax structure, potentially affecting the overall taxation burden on residents based on their income levels. By expanding the number of brackets, the intent is to ensure a more equitable contribution from individuals, especially those with higher earnings, thereby aligning tax rates with taxpayers' ability to pay.
Contention
Notable points of contention surrounding HB 2445 involve the debate between equity and economic growth. Supporters claim that the bill addresses long-standing issues of income inequality by redistributing wealth more fairly. In contrast, critics warn that increasing taxes on higher earners could lead to reduced incentives for business investments and economic expansion. Additionally, concerns have been raised regarding the potential for increased administrative complexity in tax collection and the impacts that such changes could have on small businesses and job creation.
Providing an income tax rate of 5% for individuals and corporations, decreasing the surtax for entities subject to the privilege tax and providing that future income tax rate decreases be contingent on exceeding revenue estimates.
Providing an income tax rate of 5% for individuals and corporations, decreasing the surtax for entities subject to the privilege tax and providing that future income tax rate decreases be contingent on exceeding revenue estimates.
House Substitute for SB 169 by Committee on Taxation - providing an income tax rate of 5.15% for individuals and decreasing the normal tax for corporations, increasing the income limit for the income tax subtraction modification for social security income, increasing the standard deduction by a cost-of-living adjustment, discontinuing the food sales tax credit, decreasing the privilege tax normal tax, establishing a 0% state rate for sales and use taxes for food and food ingredients on January 1, 2024, and increasing the extent of property tax exemption for residential property from the statewide school levy.
Senate Substitute for HB 2201 by Committee on Assessment and Taxation - Decreasing the corporate income tax rate and eliminating certain unused tax credits.
Providing for the apportionment of business income by the single sales factor and the apportionment of financial institution income by the receipts factor, deductions from income when using the single sales factor and receipts factor and the decrease in corporate income tax rates.
Decreasing the corporate income tax rate, discontinuing tax credits of the high performance incentive program and payroll withholding tax benefits of the promoting employment across Kansas act and repealing certain unused tax credits.