KANSAS CITY, Mo. — Kansas Gov. Laura Kelly announced Monday that she vetoed a state bill that aimed to establish a flat tax rate, and announced she is proposing a one-time tax rebate.
The bill would have set a 5.15% flat income tax on all taxpayers and decreased the normal tax for corporations.
Kelly's office said the bill "would cost the state $1.3 billion over the next three years and put public education funding at risk."
“Our public schools were one of the biggest victims in the legislature’s last tax experiment and are one of the many services that would take a hit should this bill become law,” Kelly said in a written statement. “I’m calling on legislators to put this one-time surplus back in the hands of taxpayers -- without risking our ability to continue fully funding schools and investing in roads, bridges, and essential services.”
Kansas Chamber of Commerce President and CEO Alan Cobb spoke against Kelly's decision, urging the Kansas Legislature to override the veto.
"State tax receipts have climbed nearly 30% during the last three years. Offering modest tax relief to Kansans struggling to pay for daily necessities seems to be a no brainer," Cobb said.
Kelly's proposed rebate would give $450 to individuals and $900 to couples who file jointly beginning Summer 2023.
