Brownback Proposes Eliminating Mortgage Deduction

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TOPEKA, Kan. (AP) _ Kansas Gov. Sam Brownback is proposing to eliminate a popular state income tax deduction for interest paid on home mortgages to help close a budget shortfall.

Brownback on Wednesday outlined his budget proposals for the two years beginning in July. He also provided lawmakers with more details about his proposals to cut income tax rates further, following reductions last year.

Documents show that he's proposing 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.

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

Lawmakers rejected the proposal to eliminate the mortgage interest deduction last year.