The Tax Break For Kansas Farmers That Few Know About

Following the 2012 Brownback tax cuts, farmers no longer had to pay state income tax -- just like 334,000 LLCs, S corporations and sole proprietorships.  But farmers get a little something extra: They also pay no state income tax on subsidies they get from Washington. In all, about 40,000 farmers in Kansas receive about $1 billion a year from the U.S. Department of Agriculture. Even many farmers think not paying taxes on this money is a bad idea. The farm income exemption got tacked on in the waning hours of the 2012 session as Republican leaders scrambled to get enough votes to pass the tax cuts.