The tax cut that Kansas Governor Sam Brownback hailed in 2012 as “a shot of adrenaline into the heart of the Kansas economy” has been partially reversed. After years of sluggish growth and lower than expected revenues that forced brutal reductions in government programs, a Republican-controlled legislature overcame a Brownback veto to restore some of the taxes, paving the way for a moderate boost in spending. While the tax cut turned into a debacle, there is a potential silver lining: three clear messages for policymakers on federal tax reform. First, tax cuts won’t boost growth. Second, special tax rates for businesses will surely generate tax sheltering and revenue losses, but will not produce much new business activity. And, third, most importantly, when Americans see what their tax dollars buy, they choose higher revenues and more government spending over lower taxes and draconian program cuts. These lessons matter all the more because the tax and spending proposals made by President Trump and the House GOP bear important similarities to Brownback’s policies in Kansas.
https://www.google.com/amp/s/www.brookings.edu/blog/up-front/2017/06/13/what-the-kansas-tax-cut-about-face-means/amp/