For those who wonder what would happen if the GOP had won the presidency and both houses last month, an interesting experiment is playing out right now in Kansas. It turns out that the laws of math still apply, even inside The Bubble:
OVERLAND PARK, Kan. — Acknowledging that the state is facing a “hard dip” in revenues, Kansas Gov. Sam Brownback said Tuesday that the Legislature should consider ways to pay for massive income tax cuts that he signed into law earlier this year…
Legislative fiscal analysts predicted the tax cuts would cost the state about $3.7 billion in revenue over five years.
Brownback and other advocates of the tax plan are banking that a short-term dip in tax revenues will eventually be replaced with revenues created by economic growth spurred by the tax cuts.
When Brownback first proposed the income tax plan in January, he did propose a number of ways to cover lost revenue, but he ran into trouble when lawmakers received a cool reception from constituents who didn’t want to give up their home mortgage interest deduction.
He also ran into a public relations problem when it was revealed that his tax plan — as originally proposed — would actually have raised taxes on people with incomes under $25,000 while lowering taxes for everyone else.