Takeaways:

– Kansas lawmakers are in a deadlock over tax cuts, primarily centered around Republicans advocating for a flat income tax.
– Republicans are making a second attempt at a flat tax through an amended bill. The second attempt has fewer Social Security tax cuts.
– The fate of sweeping tax cuts in Kansas remains unclear but Republicans and Democrats want tax cuts. That could mean an extended legislative session to pass them. 

Kansas lawmakers appear locked in a bitter fight after a Republican-led push for a flat tax died this week. 

Democratic Gov. Laura Kelly’s veto of that proposal survived an override attempt after Republicans were confident that they could muster enough votes to beat her. They didn’t.

Meanwhile, the governor said the Republican plan would have jeopardized the state’s ability to deliver services by cutting so deeply into the budget.  

The battle over taxes comes at the halfway point in the legislative session. That means lawmakers still have time to consider other tax bills, and a handful have been announced. Here’s a summary of the tax proposals still alive in the Statehouse. 

Republican flat tax plan fails

Kelly vetoed the Republican plan that gave $1.6 billion in tax cuts over three years. GOP leadership said it had the votes to override the veto in the House and was just one vote short in the Senate. Instead, Republicans fell three votes short in the House and couldn’t even get the override to the Senate. 

The bill had tax cuts backed by both parties — like Social Security income tax cuts, eliminating the food sales tax in April and larger property tax exemptions — but the flat tax on income killed the plan. It would have taxed everyone at 5.25% with exemptions on the first $6,150 of income and $12,300 for married couples. 

Kelly was concerned a flat tax helped the wealthiest Kansans and did little for the middle class.

Kansas Republicans again trying for flat tax

Senate President Ty Masterson of Andover told The Kansas City Star he doesn’t know what will happen next. Republican leadership has long said it will not pass tax cuts without a flat-tax proposal. But the legislative failure has some Republicans declaring the issue dead. 

“We didn’t override the veto, so we don’t have a tax package,” Rep. Bill Sutton, a Gardner Republican, told a Star reporter after the plan died. 

Republicans amended a different bill anyway to include a nearly identical flat-tax plan. The new bill replaced Kelly’s tax proposal, which never gained favor with Republicans. The second attempt at a flat tax has fewer cuts to Social Security income taxes. 

Other proposed tax cuts

Kansas lawmakers have heard a handful of bills that could cut other taxes. But those bills don’t provide sweeping tax reform. 

The path to sweeping tax cuts is unclear. The other, more limited, tax cut ideas include:

• SB 196 — It would give counties state tax dollars so they could lower their local property taxes. Republicans oppose it. They say giving counties money doesn’t guarantee it will be used correctly. 
• HB 2036 — This bill creates a property tax exemption for retired and disabled veterans. It passed the Kansas House last year with broad support, but it has yet to get a vote in the Senate this year. 
• HB 2687 — This proposal would create a child income tax credit. Married couples making between $50,000 to $75,000 could get a $200 credit per child. Couples making between $100,000 to $200,000 would get $75 per child. 

Only one of the bills had a vote in the House or Senate. Lawmakers often can’t find compromise on the most contentious issues until they face their end-of-session deadline, leaving the possibility that the dynamics could still shift this spring. 

Will Kansas have any tax cuts?

Kelly has promised to call lawmakers back to Topeka for a special session if no tax cuts are passed. A special session would give legislators another chance to pass tax cuts, but lawmakers could just as easily pass on tax cuts again if disagreement continues. 

It isn’t clear how the fighting over the flat tax will play out, but both Republicans and Democrats want to cut taxes — especially because the state has a multibillion dollar budget surplus.