Kansas governor and GOP leaders say they have a deal on tax cuts to end 2 years of stalemate

Kansas’ Democratic governor and top Republican lawmakers say they have an agreement on a package of broad tax cuts, potentially ending a two-year political standoff that has prevented their state from following others in making big reductions.

The deal announced late Thursday by Gov. Laura Kelly and GOP leaders would save taxpayers a total of about $1.2 billion over the next three years and move Kansas from three personal income tax rates to two, something Kelly had resisted. Republican leaders had hoped for income and property tax cuts worth at least $230 million more over the next three years, rejecting Kelly's argument that larger cuts would lead to budget shortfalls within five years.

Lawmakers are set to convene a special session Tuesday, called by Kelly after she vetoed the last of three tax plans approved by the Legislature before it ended its regular annual session May 1.

The state's coffers have bulged with surplus revenues, and Kelly and lawmakers agreed families needed tax cuts to offset the effects of inflation. But Kelly and top Republicans disagreed on how to cut income taxes, even after GOP leaders dropped a push for a “flat” personal income tax with a single rate. Republican leaders couldn't muster the supermajorities necessary to override Kelly's vetoes.

Meanwhile, Utah and Georgia cut income taxes this year after a dozen other states cut their income tax rates last year, according to the conservative-leaning Tax Foundation.

“This agreement allows significant, long overdue tax relief to Kansans while preserving our ability to invest in the state’s future,” Kelly said in a statement.

Kelly said the deal is “not without its flaws.” Both she and GOP leaders noted that it would provide a significantly