Apr 24, 2023

Gov. vetoes flat tax, proposes $450 rebate per Kan. tax payer

Posted Apr 24, 2023 4:00 PM

TOPEKA – On Monday, Governor Laura Kelly visited Elmont Elementary School in Seaman School District to announce her veto of House Substitute for Senate Bill 169.

The bill, which would overhaul the state’s tax structure to establish a flat tax rate, would cost the state $1.3 billion over the next three years and put public education funding at risk. Governor Kelly also announced her proposal to spend the one-time budget surplus on a tax rebate of $450 for individuals and $900 for married taxpayers filing jointly.  

“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,” said Governor Laura Kelly. “In my first term, I made a commitment to getting our state back on track. I’m proud of how far we have come, but we can’t risk turning back now. 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.”

Included in H Sub SB 169 is a 5.15 percent flat income tax – or a single tax rate applied to all taxpayers. Just like with the “tax experiment” under Governor Brownback, the flat tax poses risks to funding for public education, roads and bridges, and other essential services. Middle-class taxpayers would see less than $100 in annual savings from the flat tax, but it would cost Kansans their public schools. Already, legislators are proposing cutting money from public schools in this year’s K-12 Education budget in order to pay for this tax cut.

Governor Kelly’s proposal for a one-time tax rebate provides relief to all Kansas resident taxpayers without breaking the bank or jeopardizing funds for our public schools.