OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

Issue Position: New Tax Law

Issue Position

Date: Jan. 1, 2014
Issues: Taxes

Taxes -- Brownback Passes Plan

Wage Earners still pay Income Taxes
Business Income Exemption -- eliminates certain non-wage business income for over 190,000 small business owners (income reported by LLC's, Subchapter-S Corporations and Sole Proprietorships).
Individual Income Tax Reduction -- collapses the current three-bracket structure for individual income taxes (3.5%, 6.25% and 6.45% respectively) into a two-bracket system using rates of 3.0%and 4.9%.
Eliminates Deductions and Tax Credits
Reduces the Earned Income Tax Credit (EITC) -- Forces qualifying families to choose between receiving the Food Tax Rebate or the EITC .
Standard Deductions -- increases the standard deduction for single head-of-household filers from $4,500 to $9,000; and for married taxpayers filing jointly from $6,000 to $9,000.
Budget Deficit -- tax cuts could cause a budget deficit of over $2.5 billion by 2018.
Predicted Budget Shortfall -- drains instead of restoring needed funds to education, mental health, public safety, and childhood development.


Source
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