With Income Tax Changes, Kansas And Maryland Show Their True Colors
Critics point out, however, that the new Kansas exemption is not in any way linked to the size of the business, or to job creation and covers everyone from a self-employed orthodontist or plumber to the partners of big law and accounting firms to the owners of a handful of Kansas banks organized as S corporations. “All of the law firm partners will not be paying tax. All their associates and clerical personnel will,’’ says University of Kansas Law Professor Martin B. Dickinson, an expert in tax and estate law.
“People feel there is going to be a lot of gaming of the system. Clever people will find a way to get their activity into one of these protective classes of LLCs. Certain very large private entities will be able to qualify,’’ says Dickinson.