Yes, 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=0

Kansas 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?