October 12, 2016
The bulk of the benefits from the tax cuts designed as an economic stimulus that first were available in 2013 went to wealthy Kansans.
“Income tax revenue dropped $700 million from the year before,” said former State Budget Director and Kansas Center for Economic Growth Senior Fellow Duane Goossen. “It’s now clear, that $700 million tax cut, if you will, primarily benefited a relatively small group.”
From 2012 to 2013, Kansans making gross incomes under $25,000 paid almost $32 million more in taxes, while those who made more than $250,000 paid over $387 million less.
“For lower income Kansans, they lost a number of deductions or credits that they used to be able to receive,” said Goossen. “A food sales tax rebate. Child care and dependent deductions and things like that.”
Only about 20,000 Kansans earn $250,000 or more.
“For about 600,000 Kansans, who earn $25,000 or less, they ended up paying more than they did before those changes went into effect.”
For everyone in the middle, it turned out to be a small savings. From $25,000 to $50,000 paid about $36 million less, $50,000 to $75,000 about $48 million less, $75,000 to $100,000 about $64 million less, $100,000 to $250,000 about $182 million less.
Kansas Adjusted Gross Income also went down from 2012 to 2013, but most of that was business income that is now not taxed.
Read more from WIBW News here.