into lobbying in the state in today’s editions.
Of equal importance, though, is the growing national scrutiny of the Kansas tax cuts — and their impact on revenue and employment.
And the reviews continue to be sour. See the chart at the right.
A little more than a year has passed since the first phase of the Brownback tax cuts went into effect on Jan. 1, 2013, so it’s possible to make a preliminary assessment of their effects. The early verdict: not too good. The jury is still out on whether lower taxes will stimulate businesses to expand and hire over the long term. But the immediate effect has been to blow a hole in the state’s finances without noticeable economic growth.
Another notable development is the marked deceleration in the Kansas economy. Since January, growth has stalled, and the forecast is for more of the same. What’s with the Kansas economy?
Bold talk of cutting state income taxes is becoming muted as U.S. governors and legislatures face the reality that they can’t afford to keep their promises, even in an improving economy.