NC Budget and Tax Center

Kansas’ Republican-controlled legislature votes to raise revenue, responsibly address Brownback’s failed tax cut experiment

Here is a little hope on Saturday morning for North Carolina as we enter a budget debate that should have learned the lessons of failed tax cut experiments by now.

Yesterday, the Kansas legislature voted to raise revenue to address another year of budget shortfalls.  Since the failed tax experiment began in 2012, Kansas has seen significant cuts to public schools, health services and community corrections programs to name just a few of the areas hit hard by the lack of revenue.

After two years of addressing the budget shortfalls through more spending cuts and tax increases that hit low-income taxpayers hard,  Kansas leaders finally pursued a more permanent solution to their failure to responsibly budget for the state.

Here is more context from the Washington Post/ AP article:

Kansas’ Republican-led Legislature voted Friday to roll back a deep tax cut championed by Republican Gov. Sam Brownback, conceding it helped put the state in dire financial straits and setting up a possible showdown with him…

The state faces projected budget shortfalls totaling nearly $1.1 billion through June 2019. Even with a big tax increase, lawmakers still would have to approve some stop-gap measures such as internal government borrowing to pay bills through June, until new revenue started flowing in.

Brownback and his allies continue to argue that the personal income tax cuts he championed in 2012 and 2013 are creating economic growth and the state’s problems were largely caused by slumps in agriculture and oil production. Voters rendered a different verdict last year, ousting two-dozen Brownback allies from the Legislature and giving Democrats and GOP moderates more power.

 

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