Corporate tax bill would cost millions upon millions as state rebuilds

This year will mark the third year the House taxation committee has heard a bill proposing to decouple from the federal changes made in the 2017 Tax Cuts and Jobs Act (TCJA). The TCJA changes were made in recognition that many large U.S. multinational corporations put much effort into dodging their tax responsibility, including shifting their income to lower-tax jurisdictions.

This year, once again, your committee is considering legislation that the state cannot afford. House Bill 2553 is not a revenue-neutral bill. Based on the fiscal note from SB 22 last year, this bill will decrease revenue by roughly $130 million in the first year alone, with most of that cost benefiting multinational corporations.

The proposal would provide income tax modifications for global intangible low-taxed income (GILTI), business interest, capital contributions and FDIC premiums. Kansas Action for Children, which includes the Kansas Center for Economic Growth project, instead supports budget and tax policy that prioritizes investments in children and families, particularly among those with low incomes.

Read the full blog entry here.