Vice President for State Fiscal Policy
One of the largest tax cuts any state has ever enacted took effect in Kansas at the beginning of last year. The state sharply reduced its income tax rates and fully exempted certain business profits from taxation. It also adopted a plan to cut income tax rates even further over the next few years.
Now, in a number of other states, proponents of tax cuts are saying that Kansas’ approach is a model for how to grow a state’s economy. As we explain in our new paper, Kansas is anything but. In fact, it’s a cautionary tale for five major reasons.
Kansas’ tax cuts have meant big revenue losses and continued cuts in schools, colleges, and other services, with no noticeable economic gains. That’s not a recipe that other states should want to follow.
Click here to read the full paper.