November 30, 2015

Kansas tax cuts haven't worked

Center on Budget & Policy Priorities - Kansas’ Gross Domestic Product will grow at half the rate of national GDP in 2015, according to new projections from the state’s nonpartisan Legislative Research Department, marking another year of sluggish growth since Kansas enacted massive tax cuts meant to spur its economy.

Kansas’ huge tax cuts took effect at the start of 2013.  That year, Kansas’ economy actually shrank, even as the national economy grew.  Then, in 2014, Kansas’ economy managed some growth, but still lagged national growth. 

To be sure, Kansas’ growth also lagged U.S. growth in 2012, the year before the tax cuts took effect.  But in five of the previous six years — going back to 2006 — Kansas grew faster than the country as a whole.
After Tax Cuts, Kansas' GDP Is Lagging Behind U.S.

1 comment:

greg gerritt said...

Kansas inc, the state economic development agency that no longer exists wrote an excellent report that stated that the most a prescription of tax cuts could possibly increase your economic growth rate is 5%, in other words from 2% a year to 2.1% a year. but as Piketty noted, rising inequality harms economies, and as the IMF recently noted, giving tax breaks to rich "Job Creaters" actually harms your economy.

But the USA is plitically a fact free zone.

Check out Prosperity for more on this topic.