As President Trump and congressional Republicans ponder big tax cuts to boost the U.S. economy, Kansas has become a cautionary tale.
>Prodded by Gov. Sam Brownback, a Republican, Kansas embarked on a major tax overhaul in 2012, reducing the top income tax rate from 6.45 percent to 4.9 percent and eliminating income tax on some businesses altogether.
>Convinced they could turn the state into a heartland magnet for businesses seeking to flee high-tax states on the coasts, Republican lawmakers instead punched a huge hole in their budget. Facing mounting bills and shrinking revenue, the Legislature last month defied Mr. Brownback’s veto and moved to reverse some of its cuts.
>Whether the Kansas experiment is a referendum on conservative, low-tax policies is an open question. Obsession with tax rates often obscures other factors in businesses’ decision-making, such as the availability of a good workforce, quality of life for employees, and proximity to airports and other infrastructure, analysts say.
washingtontimes.com
