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Minutes for HB2385 - Committee on Taxation
Short Title
Providing for a 3.9% tax rate for all individuals and repealing future formulaic rate cuts.
Minutes Content for Mon, Mar 20, 2017
Scott Wells, Assistant Revisor provided an overview on HB2385 noting the bill would institute a 3.9% rate on all income regardless of filing status beginning in tax year 2018. It would repeal the glide path formula and in 2018 it would adjust the non-wage business income exemption only available to tax payers who received profit or net income from a business that has at least one employee who receives a W2.
Mr. Wells stood for questions from the Committee.
Justin Carroll, Financial Economist, Department of Revenue said the fiscal note reports HB2385 would raise approximately $25 million in 2018 and $82.5 million in 2019. The revenue estimate for the 3.9% flat tax would be approximately a negative $40 million for each fiscal year.
Mr. Carroll stood for questions from the Committee.
Proponent: (Written Only Testimony)
James Franko, Kansas Policy Institute (Attachment 1)
Opponents:
Heidi Holliday, Executive Director, Kansas Center for Economic Growth testified as an opponent to HB2385. (Attachment 2)
Written only testimony as an opponent to HB2385 was presented by the following:
Amanda Gress, Director of Government Relations, Kansas Action for Children (Attachment 3)
Neutral:
Eric Stafford, Vice President of Government Affairs, The Kansas Chamber testified as neutral to HB2385. (Attachment 4)
Written only testimony as neutral to HB2385 was presented by the following:
Sam Williams, Secretary, Department of Revenue (Attachment 5)
Chairperson Johnson closed the hearing on HB2385.
