Brownback Signs Massive Tax Cuts Into Law
KSCB News - May 22, 2012 3:49 pm
Kansas Gov. Sam Brownback has signed massive cuts in state income taxes into law.
Brownback signed the bill during a Statehouse ceremony Tuesday.
A contentious debate continues about whether the cuts will usher in economic prosperity or create massive budget problems.
The law will cut individual income tax rates for 2013 and eliminate income taxes for the owners of 191,000 businesses.
Coupled with a sales tax reduction already scheduled for July 2013, the income tax cuts would provide $231 million in tax relief for the fiscal year beginning July 1. The annual figure would grow to $934 million after six years.
A forecast from the Legislature’s research staff shows that a budget shortfall would emerge by July 2014 and, if left unchecked, grow to nearly $2.5 billion by July 2018.