IMMEDIATE RELEASE
March 20, 2007

Contact:
Sherriene Jones-Sontag
785/296-2302
Rachelle Colombo
785/296-5843

HOUSE URGES SENATE TO REFUND UNEXPECTED REVENUES

Topeka – Kansas House of Representatives leaders urged members of the Kansas Senate today to put politics aside and vote to return unexpected state revenues to Kansas business owners, property owners and those who receive Social Security benefits.

 “Thanks to our state’s improving economy, we have seen a windfall of more than $80 million in state revenues this fiscal year,” House Speaker Melvin Neufeld (R-Ingalls).  “As responsible legislators we should take this opportunity to establish new tax policy to keep improving our state’s economy.  We will stimulate much more in job and revenue growth in Kansas by returning unexpected revenue back into our economy than if we increase state spending.”

Speaker Neufeld said the tax policy supported by House Members is about economic growth.

“The House tax policy is focused on the future of our great state.  While each of these pieces of proposed legislation has a specific purpose and will benefit tens of thousands of Kansans in significant ways, they will work together to grow the Kansas economy,” explained Speaker Neufeld.

The tax relief bills supported by House Members include:

• HB 2264, Exempts social security benefits from state income tax: Assist those on fixed income as well as encourages those with $50,000+ incomes to spend their retirement years in Kansas. PASSED BY HOUSE
• HB 2031, a three-year repeal of State Franchise Tax: Encourages in-state expansion of business subsidiaries and business growth.  PASSED BY HOUSE 
• HB 2495, Reduce Corporate Income Tax: Helps retain and attract businesses. SCHEDULED FOR HOUSE DEBATE
• SB 83, Reduce Unemployment Insurance rates: Applies fair rates, stabilizes the fund and allows Kansans to reinvest in and grow their businesses. PASSED BY HOUSE/SENATE & SIGNED INTO LAW BY GOVERNOR
• HB 2430, Homestead Refund Reform Act: Doubles the refund amount available to those who qualify. SCHEDULED FOR HOUSE DEBATE

"House Republicans have demonstrated their commitment to fiscal responsibility by using unexpected state revenues to fund essential services and refund revenue to Kansas businesses and individuals who have earned it," said Majority Leader Ray Merrick.  "Rather than grow the budget with inflated spending and hold off tax cuts for election years, the House has shown we are serious about policy, not politics.  Now is the time to relieve Kansans of the excessive tax burden they bare.”

House Members also noted their budget plans for Fiscal Years 2007 and 2008 that includes $60 million in tax cuts.

“This House tax plan is clearly an equitable tax structure that provides for the truly needy, meets our state obligations, and at the same time, sends a loud, clear message that businesses and the jobs they produce are wanted in Kansas,” said Speaker Pro Tem Don Dahl (R-Hillsboro).

House Taxation Committee Chairman Kenny Wilk (R-Lansing) said it is important for Senate Members to understand the House Tax Policy and the work done by the House Appropriations Committee as they prepare to debate their own policy.

“Our goal is to make Kansas more competitive in the global market place. For example, our state’s franchise tax is a $44 million burden on Kansas businesses many other states and countries don’t have.  Repealing the tax will benefit not only the businesses but also Kansas workers and the state’s economy,” explained Taxation Committee Chairman Kenny Wilk (R-Lansing).  “We are anxious to work with the Senate to discuss any difference and find resolution to offer Kansans meaningful tax relief.”

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