The Legislature seems to be steamrolling toward cutting income taxes, even though polls show the public would much rather use budget surpluses to increase funding to education. But Democratic leaders raise a good question about the proposal to exempt non-wage business income for limited liability corporations, Subchapter S corporations and sole proprietorships: Which companies would benefit? No one seems to know. Though the measure is being promoted as a benefit to small businesses, some of the largest companies in the state, including Wichita’s Koch Industries, will get a tax cut. There is also doubt about whether the state has properly estimated the cost of the tax cut. Projections last week swung by hundreds of millions of dollars. Some also contend that projections on the cost of the business tax cut might be low. Senate Majority Leader Jay Emler, R-Lindsborg, told The Eagle editorial board that attorneys and accountants already are preparing to discuss with their clients whether to reorganize in order to take advantage of the tax break.
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