A Kansas legislative conference committee adopted a compromise tax-cutting plan designed to avoid large budget gaps in the future.
The Legislature will decide on the proposal this week. Gov. Sam Brownback endorsed the revised version after initially proposing steeper cuts.
Rep. Marvin Kleeb, R-Overland Park, one of the three House members on the six-member committee, called it “an extremely reasonable, well-thought-out tax plan.”
The top individual income tax rate will drop to 5.5% from 6.45% in 2013 and then gradually to 4.9% by 2017.
The measure also would phase out income taxes on almost 200,000 partnerships and other small businesses, and drop the sales tax to 5.7% in July 2013 from the current 6.3%.
The initial plan was for a drop to 4.9% in 2013.
The Legislative Research Department said the original tax cuts would create a $700 million revenue shortfall going in to fiscal 2019. The nonpartisan legislative body said the revised plan should result in a $165 million surplus by 2019.
