February 24, 2017

So much for states' slashing taxes.

Center on Budget & Policy Priorites - Five years ago, Kansas slashed income tax rates, eliminated income taxes entirely for many businesses, and enacted further income tax rate cuts to phase in several years into the future, aiming eventually to eliminate the income tax. Gov. Brownback called his efforts a “red state model” and claimed the tax cuts would act “like a shot of adrenaline into the heart of the Kansas economy.”

Rather than generate an economic boom, however, the tax cuts wreaked havoc on Kansas’ ability to invest in its people and infrastructure. To balance its budget, the state employed gimmicks and one-time revenue, delayed road projects, cut services, and nearly drained funds it had set aside to prepare for the next recession. Two bond rating agencies downgraded Kansas due to its budget problems. Meanwhile, job growth has lagged far behind job growth nationally, and the hoped-for economic boom shows no signs of materializing (see graph).

After Tax Cuts, Kansas' Economy Underperforming U.S.

2 comments:

greg gerritt said...

Neoliberalism and the business climate model of the conomy are simply based on lies. There is no boost to state economies by slashing taxes and regulations. too bad presidnt Toxic Dump has no use for facts.

Anonymous said...

Unfortunately, I would not have been completely convinced without the supplied links. Post a before graph, in addition to the after graph. Better yet a line graph of GDP, employment growth, tax policy, etc. for the previous decade.


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