Proposed tax plan eliminates taxes on social security income and moves Kansas to two tax

TOPEKA, Kan. (KAKE) – Kansas Governor Laura Kelly and GOP leaders have finally reached an agreement on a tax relief plan. This comes after months of disagreement.

Republican leaders who helped create the plan said they think it’s going to help save Kansans everywhere money.

“This is going to be great because we’ve got income tax relief, we’ve got social security income tax relief, we’ve got property tax relief,” said House Speaker Dan Hawkins who is a Wichita republican.

The proposed tax plan will move Kansas to two tax brackets. Right now the state has three. Hawkins explains this means the lowest tax bracket will essentially be dropped to zero. This means if you’re in the bottom bracket or if you’re part of a married couple that makes 30,000 dollars or less the income tax will be eliminated.

“We’re gonna have a whole section on the lower income levels that will pay zero and probably right now they’re paying 3, 4, 500 bucks a year so that’s significant for them,” said Hawkins.

The plan will also completely get rid of taxes on social security income for everyone. Ty Masterson, the Senate president and an Andover republican says this plan will help every Kansan save money.

“Every homeowner is gonna see property tax relief and then every income tax paying person will also see relief,” said Masterson.

This agreement comes after a months long battle to reach a plan. In April Governor Kelly vetoed a similar republican backed plan for being too aggressive.

“Legislative leadership and I have come to a consensus on a tax relief package that will be presented to the House and Senate during the upcoming special session. This agreement allows significant, long overdue tax relief to Kansans while preserving our ability to invest in the state’s future. This agreement is not without its flaws. The movement from a three-tiered to a two-tiered income tax structure limits the amount of property tax relief that can be provided to Kansans. However, it does meet the affordability criteria I proposed. Thus, should the Legislature pass this negotiated agreement, I intend to sign it.”

Specific numbers on how much this will save tax payers should be released on Monday and the plan will be presented and voted on in a special session on Tuesday. Masterson said he isn’t expecting a lengthy session.

“Senate will take it up first, send it to the house, house will take it up, pass it, and we’ll be done,” he said.