Fairer, Flatter and Simpler Pro-Growth Plan

• Lower individual income tax rates and move from three brackets to two brackets:
  • 3 percent rate for income under $15,000 ($30,000 married filing jointly), a 14 percent rate cut.
  • 4.9 percent rate for income $15,000 and over ($30,000 married filing jointly), a 24 percent cut.
  • Note: Current rates are 3.5 percent, 6.25 percent, and 6.45 percent

• Eliminate individual income tax on non-wage business income (as reported by LLCs, S-corps and sole proprietorships on lines 12, 17, and 18 of the federal form 1040 individual income tax return)

• Simplify and streamline the tax code:
  • Eliminate itemized deductions and some credits 
  • Eliminate subtraction modifications for 529 education savings program and long-term care contract premiums
  • Note: No impact on deductions or credits claimed at the federal level

• Bolster the safety net for low-income Kansans while providing greater accountability by doubling the standard deduction (from $4,500 to $9,000) for head of household filers and investing an additional $60 million in state social services and healthcare programs

• Leave the corporate income tax rate unchanged

• Hold the sales tax rate steady at 6.3 percent, with 4/10 of a cent going to the highway fund as planned in FY14, as data show that sales tax rates have the least negative impact on economic growth relative to other tax types

• Eliminate the two-year severance tax exemption on new pool oil and gas wells, except for oil wells generating fewer than 50 barrels a day