Governor Laura Kelly’s Council on Tax Reform Cautioned Radical Tax Policy Changes Could Harm COVID-19 Recovery
Topeka, KS (STL.News) On Friday, January 29, the Governor’s Council on Tax Reform heard input from state and national policy experts who provided broad and enhanced perspectives on many of the top tax issues already under consideration in the 2021 Kansas Legislature.
On the issue of allowing itemization of state income deductions even for taxpayers claiming the newly expanded federal standard deduction, Dr. Donna Ginther, the Council’s Chief Academic Advisor, presented data suggesting that this proposal would benefit less than seven percent of all income tax filers, with much of the benefit accruing to high income earners.
To that point, if itemization legislation being heard in the statehouse passed, only 1% of Kansas tax filers in the lowest tax bracket, $0.01-$25,000, would benefit. For the top 18% of taxpayers, the benefit increases especially for those earning $100,000 to $250,000. For taxpayers making $250,000 or more that benefit is minimal as many of those taxpayers already itemize. In total, the itemization legislation in the Kansas Senate would only benefit an additional 6.6% of Kanas taxpayers.
“Any tax proposal that we consider during the 2021 session must preserve our fiscal foundation and provide relief for Kansas families and small businesses who have borne the economic brunt of the pandemic,” Governor Laura Kelly said.