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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsYes, if You Cut Taxes, You Get Less Tax Revenue
http://www.nytimes.com/2014/06/29/upshot/kansas-tax-cut-leaves-brownback-with-less-money.html?_r=0Kansas has a problem. In April and May, the state planned to collect $651 million from personal income tax. But instead, it received only $369 million.
In 2012, Kansas lawmakers passed a large and rather unusual income tax cut. It was expected to reduce state tax revenue by more than 10 percent, and Gov. Sam Brownback said it would create tens of thousands of jobs.
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And indeed, while Governor Brownback wrote last month that the tax cuts were allowing businesses to hire more people and invest in needed equipment, job growth in Kansas has been modest since he signed the bill, trailing the national average and the rate in three of its four neighboring states.
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Of course, lawmakers in Kansas knew when they passed the tax cuts that this would happen; the question is whether they will lose even more revenue than they expected over the long run.
The Kansas Legislative Research Department the state-level equivalent of the Congressional Budget Office issued a memo this month saying that it appears that some of the fiscal notes associated with various income tax law changes enacted in 2012 and 2013 were understated. Translation: It looks as if we gave out a bigger tax cut than we thought.
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What is the pleural of doofus? Doofi? GOPer doofi?
Warpy
(111,359 posts)I wonder if Brownback is regretting not learning to add and subtract with all the other kids in second grade.
Shrike47
(6,913 posts)BillZBubb
(10,650 posts)The idea that tax cuts "pay for themselves" has been shown time and again in history to be baloney. There are a few targeted tax cuts will do so, but in general it doesn't work out.
Basically, when you cut taxes, you are cutting revenue. Which shouldn't come as a big surprise.
Response to deminks (Original post)
BillZBubb This message was self-deleted by its author.
Boom Sound 416
(4,185 posts)Though I don't know if it's really true and I suspect not, because the writer is off base with his LLC Definition.
LLC owners cannot set their wages to zero and have no tax burden. All 'uninvested' revenue is taxable income. LLC's are just pass throughs with respect to income. Even if the money sits in the bank, it's taxable income.