However, the policy goes much further than that. Any individual reporting income as business income rather than a wage, or receiving rental income or farm income, is also exempt. In Kansas, more than 300,000 tax filers took advantage of the exemption in the first year.
Legislators made a run at modifying the policy in the last legislative session, but Gov. Brownback stopped them in their tracks by threatening to veto any change. So unfairness persists.
Few of us like to pay taxes. If you have benefited from the business income exemption—nice. If you are a wage earner with a paycheck—tough. And you are right. It’s not fair.