March 18th, 2011
Topeka –Today on a 73 to 47 vote, the Kansas House passed the March to Economic Growth Act (MEGA) which reduces corporate and individual income tax levels with a trigger based on growth. If state tax receipts increase over the immediately preceding fiscal year, then a corresponding reduction in both taxes will occur. By providing a consistent and less complicated tax structure, this bill limits the role of state government and fosters business growth and investment.
“The overall goal of this bill is institutional change toward a pro-growth policy,” said Representative Calloway (R-Pittsburg). “We are committed to collecting revenue by growing the economy rather than increasing the tax rate on existing revenue streams. People vote with their feet. From side-by-side comparisons we know that states without individual income tax experience population and revenue growth at a consistently higher rate than states with high rates.”
During the debate, two amendments were adopted. Representative Carlson (R-St. Marys) proposed reduction of the sales tax rate to 5.7 beginning in 2013. An amendment from Representative Brown (R-Eudora) would ultimately reduce the corporate income tax rate to 3.5 while eliminating the personal income tax completely.
Posted on
Mon, March 21, 2011
by Terry L. Calloway