TOPEKA — Late Thursday, following fiery speeches on both sides of the aisle and lengthy debate, Kansas senators approved a new iteration of a flat tax plan that favors the state’s top earners and would cost the state nearly $650 million annually once phased in.
Passed 29-11, the new bill would have a veto-proof majority in the chamber if lawmakers continue to vote along the same lines. The bill now goes to the House for debate.
Sen. David Haley, a Kansas Democrat, broke with party lines to vote with Republicans, and Sen. Rob Olson split from fellow Republicans to vote against the plan Thursday.
Olson urged his colleagues to think of their constituents despite potential repercussions. Republican leadership stripped Olson of a committee chairmanship last year, when he voted against a similar flat tax proposal.
“We’re giving money away here like candy … You guys have got to vote your district,” Olson said. “There’s not one leader in here that controls us. This is not a dictatorship. You might lose your committee chair, you might lose your committee position, but you work for the people in your district. That’s who you work for.”
The flat tax marks the second Republican-driven attempt to pass a flat tax proposal in recent weeks. An initial version was shot down by Gov. Laura Kelly earlier in the session and an attempt to override her veto failed in the House.
Kansas Senate President Ty Masterson, an Andover Republican, applauded the new bill.
Senate Bill 539 would change income tax rates over six years, starting with a universal income tax rate of 5.7% in 2024, and reduced by .05% each year until 2029, which would set the rate at 5.45%.
“A bipartisan supermajority of the Kansas Senate took a significant step towards reducing taxes for every Kansan and implementing significant and sustainable tax reform by passing Senate Bill 539,” Masterson said. “I am thankful to those senators who demonstrated their commitment to working towards a compromise that delivers meaningful property, sales, and income tax relief to every Kansan and puts our state on a glidepath to real economic growth.”
While Masterson characterized a single rate flat tax as one where “everybody benefits, identically,” SB 539 would cost the state nearly $650 million annually once phased in and give 40% of the benefits to the state’s top 20%, according to an independent analysis.
Kelly has voiced disapproval for all flat tax plans. Kansas Senate Democratic Leader Dinah Sykes, a Lenexa Democrat, called the plan too extreme, and one set up for failure.
“The flat tax failed last year and once already this year for one reason: Kansans and members of this body do not support reckless tax experiments that hurt our schools, roads, and economy,” Sykes said. “I hope that once the governor vetoes a flat tax for the second time this session, Republican leadership will take irresponsible flat tax proposals off the table and join me in having honest conversations about passing tax cuts that we can afford that will support working families.”
Kansas Reflector is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Kansas Reflector maintains editorial independence. Contact Editor Sherman Smith for questions: info@kansasreflector.com. Follow Kansas Reflector on Facebook and Twitter.
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