https://www.bloomberg.com/view/articles/2017-06-19/the-kansas-supply-side-experiment-unravels
Poor planning, relying on a disproved economic theory, no feedback..... Now comes the unpleasant job of making things right. The big tax changes of Kennedy & Reagan worked. Small changes don't.
"A quick refresher: Kansas's Republican Governor Sam Brownback pushed through a substantial change in the state tax code, centered around lowering rates. He promised it would lead to more growth, tax revenue and jobs. Instead, there have been persistent tax revenue shortfalls, huge spending cuts and disappointing job creation. As my Bloomberg View colleague Justin Fox wrote, Kansas is badly lagging its neighbors, all of which have similar economies. Even worse, people (especially young people) are fleeing the state. Kansas was one of the highest outbound migration states in 2014, 2015 and 2016. 1 The vast majority of people who have moved out were either transferring when their companies left or were seeking employment elsewhere."
"By just about every measure, Kansas' economic laboratory experiment is now over, and the results are in. Supply-side tax cuts as executed in Kansas don't generate more economic growth or create more jobs. They reduce tax revenue and forced the government to cut spending on essential goods and services like roads and schools.
The reasons for this are many, but come down to a clash of theory versus reality. People don't upend their business or personal lives in response to modest changes in the tax code. And despite the antigovernment rhetoric, people want good schools and well-maintained infrastructure where they live. The next politico who wants to engage in a statewide tax experiment would do well to remember that."
Poor planning, relying on a disproved economic theory, no feedback..... Now comes the unpleasant job of making things right. The big tax changes of Kennedy & Reagan worked. Small changes don't.
"A quick refresher: Kansas's Republican Governor Sam Brownback pushed through a substantial change in the state tax code, centered around lowering rates. He promised it would lead to more growth, tax revenue and jobs. Instead, there have been persistent tax revenue shortfalls, huge spending cuts and disappointing job creation. As my Bloomberg View colleague Justin Fox wrote, Kansas is badly lagging its neighbors, all of which have similar economies. Even worse, people (especially young people) are fleeing the state. Kansas was one of the highest outbound migration states in 2014, 2015 and 2016. 1 The vast majority of people who have moved out were either transferring when their companies left or were seeking employment elsewhere."
"By just about every measure, Kansas' economic laboratory experiment is now over, and the results are in. Supply-side tax cuts as executed in Kansas don't generate more economic growth or create more jobs. They reduce tax revenue and forced the government to cut spending on essential goods and services like roads and schools.
The reasons for this are many, but come down to a clash of theory versus reality. People don't upend their business or personal lives in response to modest changes in the tax code. And despite the antigovernment rhetoric, people want good schools and well-maintained infrastructure where they live. The next politico who wants to engage in a statewide tax experiment would do well to remember that."
