In May 2012, Sam Brownback, Governor of the state of Kansas, signed into law the "Kansas Senate Bill Substitute HB 2117", which cut the number of individual income tax brackets from three to two, and cut the top income tax rates from 6.45% and 6.25% to 4.9% and the bottom rate from 3.5% to 3%. It also eliminated the 7% tax on "pass-through" income, income that businesses — such as sole proprietorships, partnerships, limited liability companies, and subchapter S corporations — pass on to their owners instead of paying corporate income tax on, for the owners of almost 200,000 businesses The law cut taxes by 231 million in its first year, and cuts were projected to increase to 934 million annually after six years.
In May 2012, Sam Brownback, Governor of the state of Kansas, signed into law the "Kansas Senate Bill Substitute HB 2117", which cut the number of individual income tax brackets from three to two, and cut the top income tax rates from 6.45% and 6.25% to 4.9% and the bottom rate from 3.5% to 3%. It also eliminated the 7% tax on "pass-through" income, income that businesses — such as sole proprietorships, partners,hips, limited liability companies, and subchapter S corporations — pass on to their owners instead of paying corporate income tax on, for the owners of almost 200,000 businesses The law cut taxes by 231 million in its first year and cuts were projected to increase to 934 million annually after six years.