Tax Reduction Ideas Heard by Legislative Committee

The Kansas Chamber’s chief lobbyist wants to break the partisan logjam at the Capitol on a bill linking the state and federal tax codes so Kansans would be able to take itemized deductions on state income taxes and benefit from standard deductions on their federal returns.

The Reflector reports that Eric Stafford, vice president of government affairs for the business organization, told the Kansas Legislature’s joint committee working on COVID-19 economic recovery issues that it was a mistake for Governor Laura Kelly to have vetoed a decoupling bill in 2019.

It would have retroactively allowed Kansas income taxpayers the opportunity to avoid a portion of state and federal income taxes.

Meanwhile, a representative of the Kansas Society of Certified Public Accountants said it was important legislators consider a state income tax exemption for businesses that accepted federal loans under the emergency Payroll Protection Program.

If companies complied with federal law by keeping workers on the payroll, those businesses wouldn’t have to repay the federal loans nor pay federal income tax on the money.