This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Kan. Lawmakers Revise Deal On Proposed Tax Cuts

The two Democratic negotiators remained skeptical and worried that projections from the Legislature's staff are too optimistic. They've also are critical of the business tax break, arguing that the plan will shift part of the state's income tax burden to poor and working-class families from the wealthy.

"We're creating a class of economic elites," said Rep. Nile Dillmore, a Wichita Democrat. "We're saying by virtue of the way you make your money, you don't have responsibilities that people who work for a living have."

But the Senate's lead negotiator, Les Donovan, a Wichita Republican, said the new tax break for businesses is likely to help small firms the most, and they will create new jobs. The plan will phase out taxes on some companies' income over five years.

"We have spent so much time on this and not making any headway," Donovan said. "It's time that we step forward and do something."

Legislative negotiators originally had agreed to drop the state's top individual income tax rate to 4.9 percent from 6.45 percent for 2013. Under the revised plan, the top rate will drop to 5.5 percent for 2013, then decline by increments to 4.9 percent for 2017.

"While we would prefer lower rates, this plan is a significant step in the right direction to increasing families' incomes and accelerates small business growth," Brownback spokeswoman Sherriene Jones-Sontag said in an email statement. "Governor Brownback encourages the Senate and House to take swift action on behalf of all Kansas taxpayers."

Without the changes in the plan, the nonpartisan Legislative Research Department had forecast that a budget shortfall would emerge by July 2015 and grow to $712 million by July 2018. With the revisions, legislative researchers projected a budget surplus of $165 million in July 2018.

The Legislature's staff and Brownback's administration disagreed about the methods used in making projections. The Department of Revenue issued a more optimistic forecast Wednesday evening showing that even if the tax plan didn't change, the state would still see a surplus of $138 million in July 2018.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs