TOPEKA (AP) – Kansas Gov. Sam Brownback is proposing that the state scrap 23 income tax credits, including one that often results in an annual refund to the working poor.
Eliminating the credits is a key part of the tax plan Brownback outlined Wednesday evening in his annual State of the State address.
The governor said he wants to make the individual income tax code fairer and simpler.
But his proposal to eliminate the earned income tax credit is likely to spark debate. The credit goes to the families of poor workers, and it often results in annual refunds, even if they don’t pay taxes.
He’s also proposing sweeping changes in the state’s individual income tax system that would reduce rates and help thousands of small business owners.
But the proposals Brownback outlined Wednesday would increase mineral severance taxes for some oil and gas producers.
It also would keep the state sales tax at 6.3 percent, even though the tax is scheduled by law to drop to 5.7 percent in July 2013.
Speaking to a joint session of the Legislature, the governor said his proposals would make income taxes, in his words, “fairer, flatter and simpler.”
Brownback already has outlined other parts of his agenda, including a plan to overhaul how the state finances public schools.
