NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Dan Murray, who represents the Kansas chapter of the National Federation of Independent Business at the Kansas Statehouse says the single income tax rate bill that Gov. Laura Kelly vetoed was not able to be successfully overridden and that is a negative for NFIB-Kansas members.
"We are certainly disappointed in that," Murray said. "We felt that tax bill would have provided, not only tax relief for our small business owners, but also simplified the code for them."
The reason is that a lot of their members still are taxed as individuals.
"Nearly 75% or more are pass through entities, LLC's, sub S's," Murray said. "They pay at the individual level. The individual income tax rate really impacts our members the most, although it did also touch upon the corporate tax rate, as well."
The bill would have reduced the number of tax brackets in Kansas from three to just one at 5.15%.
"It would have also allowed for additional increases in the standard deduction," Murray said. "That was tied to cost of living adjustments related to the IRS code, then generally would have decreased corporate tax rates by about a percent."
Neighboring states, including Colorado and Illinois, both have a flat tax, easing the compliance burden on small business owners there. The proposal fell just one vote short of an override in the Kansas Senate 26-14. It had the required two-thirds on the House side.
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