Kansas 2023-2024 Regular Session

Kansas House Bill HB2529

Introduced
1/18/24  
Refer
1/18/24  

Caption

Decreasing the individual income tax rates.

Impact

The bill's impact on state laws involves an overhaul of the income tax structure as it pertains to individuals. By decreasing the tax burden, proponents argue that it will increase disposable income for residents, potentially leading to greater consumer spending and increased economic growth within the state. Additionally, the reduction in tax rates is positioned as a strategic move in response to national and regional competition for residents, especially among neighboring states with more favorable tax rates. However, this change would also necessitate a reevaluation of state revenue projections and budget planning, given that lower tax rates could lead to reduced income for state services unless offset by increases in other revenues or cuts to expenditures.

Summary

House Bill 2529 proposes a decrease in individual income tax rates in Kansas. The legislation aims to amend existing tax laws to lower the tax rates applied to residents, particularly aiming at making the tax system more favorable for individuals with various income brackets. The bill outlines specific percentage reductions for different ranges of taxable income, thereby adjusting the overall burden of income tax on residents. This proposal is part of a broader effort to stimulate economic activity and improve the state's fiscal climate by making it more attractive for individuals to reside and work in Kansas.

Contention

Notably, there are points of contention surrounding HB2529. Critics of the bill, particularly from opposing political factions, argue that the reduction in tax rates could exacerbate funding challenges for vital public services, such as education and healthcare. Concerns have been raised about the sustainability of funding for these essential services if the tax cuts lead to significant decreases in overall state revenue. There is a fear that while the bill may provide immediate financial relief to some taxpayers, it could result in long-term fiscal instability for the state, as well as an uneven benefit across different income groups.

Companion Bills

No companion bills found.

Previously Filed As

KS SB7

Reducing income tax rates for resident individuals domiciled in a rural equity decline county.

KS HB2061

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.

KS SB61

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.

KS SB169

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.

KS HB2201

Senate Substitute for HB 2201 by Committee on Assessment and Taxation - Decreasing the corporate income tax rate and eliminating certain unused tax credits.

KS HB2410

Increasing the taxable income amounts by a cost-of-living adjustment for determining Kansas income tax owed.

KS HB2445

Providing for additional income tax rate brackets.

KS HB2175

Providing for future decreased income tax rates contingent on retention of a 7.5% state general fund ending balance.

KS SB539

Simplifying income tax rates for individuals, increasing the standard deduction and the Kansas personal exemption, eliminating the income limit for the income tax subtraction modification exempting social security benefits, establishing a child tax credit, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the privilege tax normal tax rate and establishing a 0% state rate for sales and use taxes for sales of food and food ingredients on July 1, 2024.

KS SB546

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.

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