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UPDATE 1-Tax hike bill opposed by Kansas governor passes House
February 16, 2017 / 10:56 PM / 6 months ago

UPDATE 1-Tax hike bill opposed by Kansas governor passes House

(Adds Senate rejection of different bill)

Feb 16 (Reuters) - The Kansas House on Thursday approved a bill raising taxes to plug state budget holes over the objection of Republican Governor Sam Brownback.

The governor on Wednesday blasted the measure, which passed the House in a 76-48 vote, claiming it would "pummel the pocketbook of middle-class families."

The legislation would raise individual income tax rates and end a business tax exemption, raising revenue by an estimated $590 million in fiscal 2018, according to a legislative analysis.

Tax cuts passed by the Republican-controlled legislature since 2012 have punched holes in the state's budgets as revenue failed to meet targets for months. S&P this month revised the outlook on Kansas' AA-minus credit rating to negative from stable citing structural budget pressures.

The House bill now moves to the Senate, which is expected to take it up on Friday, according to Morgan Saib, a spokeswoman for Senate President Susan Wagle, a Republican. The Senate on Thursday rejected a different bill with tax-rate and other changes that would raise an estimated $702.5 million in the fiscal year beginning July 1. (Reporting by Karen Pierog in Chicago; Editing by Alan Crosby and Matthew Lewis)

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