Kansas Could Lose Big if TCJA Expires

Originally posted at the Kansas Policy Institute.

When Congress passed the Tax Cuts and Jobs Act (TCJA) in 2017, it sparked a wave of economic growth across the country, and Kansas was no exception. This wasn’t just about adjusting tax brackets or corporate rates. It was about helping working families, small business owners, and entire communities thrive.

With major parts of the TCJA set to expire after 2025, that progress is at risk. If Congress fails to act, Kansas families could see their taxes rise, local businesses may face tighter margins, and the state could lose momentum at a time when stability is desperately needed.

According to Americans for Tax Reform, the TCJA provided broad-based relief to Kansans of all walks of life:

• 225,780 Kansas households benefited from the doubled child tax credit.
• 982,930 households took advantage of the doubled standard deduction, making tax filing easier and reducing taxable income.
• 40,480 households were no longer subject to the Obamacare individual mandate penalty, a tax often hitting low-income earners the hardest.

These weren’t just numbers on a ledger. They were meals on the table, car payments made on time, and extra breathing room in a family’s budget. For a single parent receiving an average $1,300 annual tax cut, or a typical family of four saving $2,000, it meant greater security and freedom.

Local businesses saw the difference, too. Ferroloy in Wichita, a small foundry, was struggling to stay afloat. But after the TCJA passed, the company doubled its workforce and began a $12,000 square foot expansion. President Mark Soucie credited the tax reform for enabling his small business to compete and grow:

“If you want small businesses to grow and prosper in this country, we need laws, like tax reform, that can drive economic growth.”

Lawrence Paper Company invested $5 million into its facilities and gave out $500 bonuses to 300 employees. Workers immediately put the money toward household needs—paying off bills, managing holiday expenses, and investing in their communities.

Heartland Seating in Shawnee expanded into new markets, hired new staff, and boosted wages thanks to savings from the TCJA. These are real people—your neighbors—benefiting from smart, pro-growth tax policy.

The benefits even extended to Kansans’ utility bills. Companies like Kansas Gas Service and Black Hills Energy passed on tax savings to customers, resulting in millions in utility bill reductions. When the corporate tax rate fell from 35% to 21%, those savings didn’t just sit in boardrooms—they reached homes across the state.

This progress is now threatened if not extended by the end of 2025. This should be paired with federal spending restraint because excessive spending drives high deficits. Simply stated, the federal government is broke. Taxpayers are $36 trillion in the hole, and that number has grown from $23 trillion since 2019. Without systemic reform and real, actual spending restraint, things will go from bad to worse.

Meanwhile, unless Congress makes the TCJA permanent and reins in excessive federal spending, Kansans could face higher taxes, more complicated filings, and reduced business investments. That would mean fewer job openings, slower wage growth, and more pressure on working families who are already battling inflation.

But this isn’t just a federal issue. Kansas lawmakers should also act now to strengthen the state’s economy by pursuing sustainable budgeting—limiting spending growth to population plus inflation—and ensuring that tax relief is long-lasting and responsible.

The TCJA worked. It trusted people—not government—with their money. It gave families a shot at financial stability and empowered businesses to hire, invest, and grow. Kansas should lead the charge in defending that success, not watch it slip away.