“Sweeping” is the word the Associated Press used to describe the changes in the individual income tax system proposed by Kansas Governor Sam Brownback in his State of the State speech last week.
Brownback’s plan is also designed to help thousands of small businesses.
The plan collapses three individual income tax brackets into two, cuts the tax rates, and eliminates certain credits and deductions … including charitable contributions and mortgage interest payments. In all, two dozen tax credits would go away, but Brownback counts on lower tax rates to ease the pain.
The Governor also wants to leave the state sales tax at 6.3%, even though it’s scheduled to drop to 5.7% in July 2013.
The Governor wants to eventually get rid of the state income tax entirely, counting on economic growth to bring in lost revenue to the state.
Yes … these are big changes. How much of the Governor’s plan will make it through the legislature?
Our thought for today is from Richard Hooker:
“Change is not made without inconvenience, even from worse to better.”