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Kansas Gov. Laura Kelly releases 3-part tax cut plan to save Kansans more than $500M

Gov Laura Kelly Taxes.jpg
Posted at 11:21 AM, Dec 19, 2022
and last updated 2022-12-19 12:21:53-05

KANSAS CITY, Mo. — Kansas Gov. Laura Kelly released her three-part "Axing Your Taxes" plan Monday to save Kansans more than $500 million over the next three years.

“I’m pleased to introduce a plan that axes taxes for Kansas families and retirees in a way that keeps our state’s economy and budget strong,” Kelly said. “By cutting taxes on groceries and diapers, school supplies, and social security, this plan will put money back in Kansans’ pockets and create real savings for those who need it most.”

The comprehensive plan includes a push to immediately "axe the tax" on groceries and eliminate the state sales tax on essential goods, create an annual state sales tax holiday for school supplies, and cut taxes on social security for retirees.

If passed, the first part of her "Axing Your Taxes" plan would supersede the gradual reduction and immediately zero out the tax – as well as the state sales tax on products like diapers and feminine hygiene products, which were not included in the 2022 bill.

The second part of the plan would create a three-day zero percent sales tax holiday every August on school supplies, personal computers, instructional materials, and art supplies. The holiday would provide relief to families and teachers gearing up for back to school and keep Kansas retailers competitive with surrounding states.

The final part of the plan would make it so no Kansan making under $100,000 pays full taxes on social security.

Currently, Kansans earning less than $75,000 annually do not pay state income tax on social security income. But once they earn a dollar more – including through investments and life insurance policies – the entirety of their social security income is subject to state income tax.

“I am calling on legislators of both parties to support these bills and provide practical financial relief to families and retirees across our great state,” Kelly said.

Earlier this year, Kelly signed the “Axe the Food Tax” bill to gradually eliminate the 6.5% state sales tax on groceries, which is one of the highest in the country, starting Jan. 1, 2023.