As the tax reform debate begins to heat up, businesses and investors are beginning to pay closer attention to the House GOP Tax Reform Blueprint, a tax plan released last June by Speaker Paul Ryan and House Ways and...
- The Tax Policy Blog
- Kansas Income Tax Cuts: Boom, Bust, or Wash?
Kansas Income Tax Cuts: Boom, Bust, or Wash?
Yesterday, the Center on Budget & Policy Priorities (CBPP) attacked the recent tax cut package in Kansas (which changes the three-bracket 3.5%/6.25%/6.45% income tax into a two-bracket 3.0%/4.9% income tax, and perhaps even lower if revenue growth exceeds a stated threshold). The CBPP report argues that Kansas is not a model because cutting taxes has reduced revenue by some $800 million per year, led to lower spending growth, cut income taxes primarily for those who earn high incomes, won't grow the economy in the long-term, and haven't boosted the economy so far.
The first four of those five critiques are rhetorical and unrelated to actual evidence, or they were purposes of the bill (such as reducing revenue). Indeed, it would be news if CBPP ever said anything positive about income tax cuts. Their fifth point rests on an analysis that Kansas is growing jobs, but more slowly than some other states. Hardly damning.
For our part, we have criticized how the Kansas tax cuts were structured, especially the lack of base broadening and the new loophole for pass-through businesses. The verdict is not yet in on whether the Kansas cuts are a boom, a bust, or a wash.
Get Email Updates from the Tax Foundation
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.
Related State Articles
- Lunch Links: Trump and Clinton Campaigns Leave Lots to the Imagination on Taxes; Bipartisan Support for Fairer, Simpler Tax Code; Why Supporters of a Carbon Tax Oppose Its Passage on Washington Ballot
- Lunch Links: Clinton Holds Back Details on Business Tax Plan; Leading Economists Sign Letter of Opposition to Trump; Los Angeles Weighs Separate Marijuana Taxes from Statewide Proposition; Kansas Once Again Misses Revenue Projection
- Lunch Links: Debating Small, Progressive Taxes vs. Larger, Less Progressive; More Blowback on Brownback's Kansas Tax Policy; Plea Agreement Reached by Tax Court Judge
- 1 of 26
- next ›