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Minutes for HB2687 - Committee on Taxation
Short Title
Establishing a child income tax credit.
Minutes Content for Tue, Feb 20, 2024
Chairperson Smith opened the hearing for HB2687.
Adam Siebers, Assistant Revisor, provided an overview for HB2687 that would provide an income tax credit for each qualifying child of the taxpayer. The amount of credit would be dependent on the income and set forth in the table in the bill with the amount of credit decreasing with the rise in Kansas adjusted gross income.(Attachment 1) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2687 stating the bill would decrease State General Fund revenues by $190.9 million in FY2025, $192.8 million in FY2026, and $194.7 million in FY2027. To formulate these estimates the Department of Revenue simulated this tax policy change based on actual tax return data from tax year 2021. The Department estimates that 733,161 credits would be claimed for resident children with 11,074 being married filing separate returns. Ms. Smith stood for questions from Committee members.
Proponents:
John Wilson, President & CEO, Kansas Action for Children, testified as a proponent for HB2687. Mr. Wilson stated the bill creates tax relief for families by providing a state child tax credit and as any parent or caregiver knows raising children is expensive. The child tax credit can reduce the financial squeeze experienced by so many parents in our state by providing financial breathing room to low and middle income parents and their kids. In November, 2022, 46.0 percent of households with children had difficulty paying household expenses. There are 21.0 percent of Kansas families considered low-income and 13.0 percent of Kansas kids (0 to 18) live in poverty. (Attachment 2)
Chairperson Smith noted the Committee will ask questions to all proponent conferees after they testify.
Donna Ginther, Director, Institute for Policy & Social Research, Roy A Roberts & Regents Distinguished Professor of Economics, University of Kansas, testified as a proponent for HB2687 that would provide a refundable tax credit to households with children. The universal tax credit would provide funds for all families with children. The child tax credit is more generous for low-income families and becomes smaller for high-income families. Ms. Ginther provided two tables in her testimony showing the analysis of hypothetical married taxpayers with two children by Kansas Adjusted Gross Income levels ranging from $20,000 to $300,000. (Attachment 3)
Jeannette Collier, NE Kansas Community Action Program testified as a proponent for HB2687 that will provide low-income children the opportunity for a healthier more socially connected life and will improve their opportunity for economic mobility over the course of their lifetime. The child tax credit will provide a vital resource for families and will improve their ability to meet their basic needs. Low-income families are faced with housing,especially rental, costs; food; transportation; childcare costs; and energy related financial burdens on a daily basis. (Attachment 4)
Dr. Laura Plencner, MD, FAAP, Kansas Chapter of the American Academy of Pediatrics, testified via Webex as a proponent for HB2687 that would give Kansas parents and caregivers extra financial resources to address economic challenges and provide a buffer against financial strains. In her testimony she addressed the potential benefits of a universal state child tax credit on poverty and the extension of food security. Family poverty is a key risk factor for food security that is common among low-income families with children. (Attachment 5)
All conferees responded to questions from Committee members.
Written only testimony was submitted by the following as proponents for HB2687:
Brenda Bandy, Executive Director, Kansas Breastfeeding Coalition, (Attachment 6)
Kristy Baughman, Executive Director, United Community Services of Johnson County, Inc., (Attachment 7)
Gail Cozadd, Kansas Children's Service League, (Attachment 8)
Sarah E. Elsen, Child Care Aware of Eastern Kansas, (Attachment 9)
Timothy Graham, Kansas National Education Association, (Attachment 10)
Tanya Koehn, Child Care Aware, (Attachment 11)
Erin Lawrence, Community Children's Center, (Attachment 12)
Jessica Lehnherr, United Way of Kaw Valley, (Attachment 13)
Kathleen Marker, CEO, YWCA Northeast Kansas, (Attachment 14)
There was no testimony submitted as neutral or opponent to HB2687.
Chairperson Smith closed the hearing on HB2687.
