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Minutes for HB2178 - Committee on Taxation
Short Title
Concerning income tax; rates; itemized deduction for certain medical expenses.
Minutes Content for Thu, Feb 2, 2017
Scott Wells, Revisor, explained that HB2178 contains three provisions two of which will begin on January 1, 2017. The first provision concerns the income tax rates; the bottom rate will remain at 2.7% and the top rate will increase to 5.25% for tax year 2017 and all tax years thereafter. Additionally, itemized deductions would include 100% of medical deductions under Section 213 of the Internal Revenue Code and the glide-path formula is repealed.
Mr. Wells stood for questions from the Committee.
Jack Smith, Kansas Department of Revenue provided an overview of the fiscal note for HB2178. He noted there are a couple of changes within the bill. The net effect is the new tax rate increase and backing out amounts for the new medical itemized deductions. Businesses would not be taxed under this bill.
Proponents:
Mark Tallman, Kansas Association of School Boards provided testimony as a proponent of HB2178. He noted a comprehensive tax reform will restore necessary funding to the State of Kansas for investment in core services like education. (Attachment 1)
Mr. Tallman stood for questions from the Committee.
Opponents:
Dave Trabert, President, Kansas Policy Institute provided testimony in opposition to HB2178. He note the State of Kansas has had far stronger growth in tax revenue than in inflation long term and this is after some tax reductions were provided. Tax revenue has been growing much more than inflation but cannot keep up with the spending. (Attachment 2)
Mr. Trabert stood for questions from the Committee.
Eric Stafford, Vice President of Government Affairs, The Kansas Chamber presented testimony in opposition to HB2178. (Attachment 3)
Neutral:
Written testimony was received from Heidi Holliday, Executive Director, Kansas Center for Economic Growth as neutral to HB2178. (Attachment 4)
There being no additional conferees to testify, the hearing on HB2178 was closed.
Meeting was adjourned at 4:46 p.m.
Next meeting scheduled for Monday, February 06, 2017.
