Yesterday, the Kansas House approved a bill to eliminate the state's
franchise tax for small businesses
Gov. Kathleen Sebelius wants to eliminate the tax for all businesses with a net worth of $1 million or less.
Republicans say abolishing will help the economy and encourage new growth. They note that the tax hurts economic development and job creation. Businesses contribute about $44 million a year through the tax.
Democrats on the other hand, worry about the state budget. They suggested a plan to stop taxing companies that offer health insurance for workers.
Right now business pay based on a percentage of their net worth. Smaller businesses with a net worth of $100,000 or less don’t pay the tax. Next year businesses with a net worth of $3 million or less would be exempt. Then the franchise tax rate would be cut to half, and the following year it would be eliminated.
The House approved the bill and now it moves to the Senate. Source:
The Kansas City StarTechnorati Tags:
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