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Kansas House drops major provision of tax plan

Published on -3/20/2013, 3:09 PM

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TOPEKA, Kan. (AP) -- Kansas House members have rejected a proposed diversion of highway funds to other uses as they consider cutting sales and individual income taxes.

The House debated a bill Wednesday to follow up on income tax cuts enacted last year. Members expected to vote later on giving the tax legislation first-round approval.

The bill originally would have diverted $382 million in highway funds over two years to other uses, to help stabilize the budget.

But the idea inspired strong protests. The House first voted 59-58 to reduce the diversion to $181 million, then voted to eliminate it altogether.

The bill promises future income tax reductions if overall state revenues grow. It also would allow the state sales tax to decline in July as scheduled by law.

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