House Status:
Senate Status:
Senate Status:
Minutes for HB2542 - Committee on Taxation
Short Title
Increasing the subtraction modification for social security income to $100,000.
Minutes Content for Wed, Feb 12, 2020
Adam Siebers, Assistant Revisor provided an overview on HB2542 stating the threshold would be raised for individuals who currently have gross income of $75,000 or less. HB2542 would increase the threshold to $100,000 for all taxpayers beginning in tax year 2020.
Kathleen Smith, Kansas Department of Revenue provided information on the fiscal note for HB2542 estimating it would decrease the State General Fund revenues by $43.3 million in FY 2021, $34.4 million in FY 2022, and $35.4 in FY 2023. She noted there are approximately 34,000 taxpayers that would be impacted by this bill.
John Lee, Tax Simple Center testified as neutral on HB2542 and HB2567 noting there is a Social Security tax cliff in Kansas. When the adjusted gross income is $75,000 or less, Social Security benefit is 100 percent and then it is 0 after $75,000. He noted one linear solution can be used to reduce Social Security benefit rates from 100 percent to 0 gradually with one bracket. John Lee provided a formula and comparison table between the existing tax calculation system (Attachment 1).
Proponent
Written only testimony as a proponent to HB2542 was presented by:
Michael Austin, Kansas Policy Institute, (Attachment 2).
Hearing closed for HB2542.
