According to a four-year average of 2018 through 2021 tax returns from the Kansas Department of Revenue, people with incomes less than $50,000 made up 17% of adjusted gross income (AGI) in the state, yet paid 9% of the tax. For instance, a single filer making $30,000 in taxes today and taking advantage of the standard deduction and personal exemption pays $951 in income taxes currently, but because of the exemption, will pay $463 in income taxes – that’s $488 saved.Ī larger share of the tax relief goes to people in the higher income brackets because they are paying the majority of the tax burden today. The below table compares Kansas’s current tax brackets to how much they would be taxed under HB 2061.Ĭontrary to concerns that a flat tax shifts more burden to people with lower incomes, everyone saves money with the current Kansas proposal because the lowest tax bracket becomes exempted. But the rate of taxable income is just the same for everybody. ![]() Under the proposed flat tax, all current deductions and exemptions still exist. A flat tax would be one single tax rate applied to all incomes. The tax rate increases based on different incomes, or brackets. However, there are still many questions about what a flat tax is and that can be quickly answered. This reform would be a simple and fair change that saves taxpayers cash and boosts the Kansas economy by promoting investment and keeping the cost of business and living low. ![]() This week, the Kansas House’s Committee on Taxation will hold the first hearings on HB 2061, a bill that would usher in a flat tax on individual and corporate income.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |