TOPEKA, Kan. (KNS) — The Kansas Senate has approved a bill eliminating state taxes on all income from retirement accounts, like Social Security and 401K accounts. The measure is now headed to the House for consideration.
The change is estimated to add $260 million in tax cuts, for a total of $450 million annually.
Republican Senator Mike Thompson says the measure will help keep retirees from leaving Kansas. “We’re attempting to help them and help retain them in the state so they can continue to contribute to the economy,” Thompson said.
Opponents argue the additional cuts are too costly for the state budget. The move to cut taxes on Social Security income has bi-partisan support in the Legislature.
