They also have the first $10,450 exempt from the 4.75% income tax. Both families get a standard deduction of $8,000 and personal exemptions totaling $9,000 ( four at $2,250 each). The adjacent example, using the parameters of SB 169, compares the results for a family of four with adjusted gross incomes of $250,000 and $40,000. Taxpayers with Incomes above $100,000 account for 61% of total resident income, but they pay 70% of the income tax.įurther, people with lower incomes will still pay a lower effective tax rate because a larger portion of their income is exempt from taxation. For example, resident taxpayers with adjusted gross income below $50,000 account for 17% of total AGI, but they only pay 9% of the total resident income tax. The savings are smaller for people with lower incomes, but that is because people with higher incomes are paying a larger portion of the total income tax. Exempting the first $5,225 single / $10,450 married ensures that everyone pays less tax. An income tax rate of 4.75% is charged to taxable income in excess of $10,450 for joint returns and $5,225 for single individuals. The Senate bill, SB 169, takes a slightly different approach. The flat tax proposal taxes all income above the $15k/$30k level at 5%, so again, all of that income is taxed less. The next $15,000 single /$30,000 married is currently taxed at 5.25%, and income above those levels is taxed at 5.7%.
Currently, that income is taxed at 3.1%, and since zero is less than 3.1%, that is a tax reduction.
House Bill 2061 exempts the first $15,000 (single) and $30,000 (married) from income tax. The Kansas City Star earlier this month deceived readers about education, and now the Kansas Reflector is making false claims about education savings accounts and the flat tax proposal.Ī Kansas Reflector editorial says the flat tax plan “benefits the wealthy at the expense of everyone else.” That’s not true because ‘everyone else’ would not pay more income tax to ‘benefit the wealthy ’ everyone gets a tax reduction under the flat tax proposals.
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