TOPEKA | Gov. Sam Brownback's tax plan isn't the only one that hurts the poor.
New numbers out today show that a plan moving through the Kansas House would raise taxes on average for the poor, too.
The House taxation committee passed a bill this week that lowers individual income taxes on average for everybody except anyone making less than $25,000 a year.
The numbers, put together by the Department of Revenue, show that someone making less than $25,000 a year would pay on average $71.80 more in taxes.
Meanwhile, someone earning more than $250,000 a year would pay about $1,500 less.
The plan that emerged from the House committee this week has a far different impact than the one that Republican leadership put out a couple weeks ago.
As originally proposed, the House leadership had a plan that would have lowered taxes on average $11.64 for someone making less than $25,000 a year.
However, the committee voted to eliminate refundable tax credits available to the poor, which could save the state almost $100 million.
The House committee amended the plan to make refundable tax credits worth less by making them nonrefundable.
A refundable tax credit can reduce your tax liability below zero because it’s possible to receive a refund even when you don’t owe taxes. A nonrefundable tax credit can only be used to reduce the amount of taxes you owe.
The governor originally called for eliminating the earned income tax credit and many others that benefit the poor including the food sales tax rebate.
The House leadership had proposed keeping those tax credits although it would have cut the benefit from the earned income tax credit in half.
House Speaker Mike O'Neal told The Associated Press that he and other GOP leaders were looking at making changes before the bill reaches the full House for debate.
“That would be my preference. Obviously, the committee accepted an amendment that had that effect and we want to evaluate that to see if that needs to be changed,” said O'Neal, a Hutchinson Republican
Democrats, meanwhile, vilified the plan.
"Any tax reform that shifts the burden of funding state services to poorest working Kansans is fundamentally contrary to Kansas values,” said Rep. Nile Dillmore, the Ranking Democrat on the House Taxation Committee.
“The plan that passed out of the House Taxation Committee will throw the State of Kansas into a perpetual budget crisis. If you enjoyed the budget cuts of the last three years, you’ll love the next 10 years,” Dillmore said in a statement.
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