Kansas governor wants to get rid of popular mortgage deduction

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Kansas Governor Looks to Phase Out Income Tax

Gov. Sam Brownback argues the state has “the best atmosphere to grow small businesses”.

Kansas Gov. Sam Brownback on Wednesday called for ending the state's popular home mortgage deduction, as part of an effort to close a budget shortfall.

Brownback joins a group of Republican governors looking for creative ways to balance the budget while reducing tax rates.

But the move to get rid of the deduction for interest paid on home mortgages is controversial, and has already been rejected once.

Brownback also wants to phase in a new round of income tax cuts over three years, while keeping the state's sales tax rate at its current level, rather than letting it drop in July as previously scheduled.

Under the governor's plan, the bottom income tax rate would go from 3 percent to 2.5 percent in 2014, and then down to 1.9 percent by 2016.

His proposals provide an additional $541 million in revenues for the fiscal year beginning July 1.

The Associated Press contributed to this report.