Kansas Governor Democrat Laura Kelly announced at a Statehouse news conference Monday afternoon that she has vetoed Senate Bill 22, the so-called tax windfall bill.

“Senate Bill 22 would throw our state, once again, into a self-inflicted budget crisis, putting our future at risk in order to give significant tax breaks to entities who need them the least,” said Governor Kelly. “According to the Institute on Taxation and Economic Policy, only 15 percent of Kansans would save any money at all under this legislation. Virtually no one making less than $44,000 a year would see any benefit.”

Republican Senate President Susan Wagle, who shepherded the bill through her chamber by creating a special committee and chairing it to get the concept to the floor, responded almost immediately.

“She’s just failed on her campaign promises to lower sales tax on food and to prevent a tax increase on Kansas individuals and Kansas businesses,” said Wagle. “This tax increase, when she vetoed this bill, is a 12 percent increase to businesses that do business with foreign countries. We have a lot of agricultural companies here in the State of Kansas. It’s a devastating blow.”

The Kansas Chamber of Commerce also backed the bill.

“She said in her press conference that corporations are going to feel the pain,” said Kansas Chamber VP for Government Affairs Eric Stafford. “I think that’s very true. If she doesn’t want to have future investment, then she’s making the right decision, by keeping Kansas uncompetitive, by starting to tax foreign income that’s never been subject to Kansas tax in the first place.”

It remains to be seen how aggressive Legislative leadership will be in trying to override Kelly’s veto.