Monday, June 30, 2014


(h/t Atrios)

Gov. Sam Brownback of Kansas managed to slash state income taxes and the result was predictable: dramatic loss of revenue.  The genius Brownback relied on was the infamous (or so I thought) ARTHUR LAFFER.

From Paul Krugman:
Two years ago Kansas embarked on a remarkable fiscal experiment: It sharply slashed income taxes without any clear idea of what would replace the lost revenue. Sam Brownback, the governor, proposed the legislation — in percentage terms, the largest tax cut in one year any state has ever enacted — in close consultation with the economist Arthur Laffer. And Mr. Brownback predicted that the cuts would jump-start an economic boom — “Look out, Texas,” he proclaimed.
But Kansas isn’t booming — in fact, its economy is lagging both neighboring states and America as a whole. Meanwhile, the state’s budget has plunged deep into deficit, provoking a Moody’s downgrade of its debt.

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