| dbo:abstract
|
- The Kansas experiment refers to Kansas Senate Bill Substitute HB 2117, a bill signed into law in May 2012 by Kansas state Governor Sam Brownback, and its impact on Kansas. It was one of the largest income tax cuts in the state's history. The Kansas experiment has also been called the "Great Kansas Tax Cut Experiment", the "Red-state experiment", "the tax experiment in Kansas", and "one of the cleanest experiments for how tax cuts affect economic growth in the U.S." The cuts were based on model legislation published by the conservative American Legislative Exchange Council (ALEC), supported by supply-side economist Arthur Laffer, and anti-tax leader Grover Norquist. The law cut taxes by US$231 million in its first year, and cuts were projected to total US$934 million annually after six years, by eliminating taxes on business income for the owners of almost 200,000 businesses and cutting individual income tax rates. Brownback compared his tax policies with those of Ronald Reagan, and described them as "a real live experiment", which would be a "shot of adrenaline into the heart of the Kansas economy", and predicted that by 2020 they would have created an additional 23,000 jobs. By 2017, state revenues had fallen by hundreds of millions of dollars, causing spending on roads, bridges, and education to be slashed. With economic growth remaining consistently below average, the Republican Legislature of Kansas voted to roll back the cuts; although Brownback vetoed the repeal, the legislature succeeded in overriding his veto. Several reasons have together been given to explain its failure. Most tax cuts only generate enough new revenue (due to growth) at the new lower rates to offset 10–30% of the initial tax cut, necessitating spending cuts to avoid deficits. Kansas's elimination of pass-through income (initially projected to apply to 200,000 taxpayers, but used by 330,000) created a loophole which allowed many taxpayers to restructure their employment to completely avoid income taxes, thereby additionally decreasing revenue. Tax cuts are theorized to generate modest economic growth only in the long term, not the short term. (en)
|
| rdfs:comment
|
- The Kansas experiment refers to Kansas Senate Bill Substitute HB 2117, a bill signed into law in May 2012 by Kansas state Governor Sam Brownback, and its impact on Kansas. It was one of the largest income tax cuts in the state's history. The Kansas experiment has also been called the "Great Kansas Tax Cut Experiment", the "Red-state experiment", "the tax experiment in Kansas", and "one of the cleanest experiments for how tax cuts affect economic growth in the U.S." The cuts were based on model legislation published by the conservative American Legislative Exchange Council (ALEC), supported by supply-side economist Arthur Laffer, and anti-tax leader Grover Norquist. The law cut taxes by US$231 million in its first year, and cuts were projected to total US$934 million annually after six year (en)
|