Evolution, not revolution, for taxes

Evolution, not revolution, for taxes.

Republican governors in other states seem to be learning from the experiences of Kansas Governor, Sam Brownback. Were the tax ‘reforms’ instituted by Republicans in Kansas too drastic? Many now think so. The $279 million revenue gap, and a credit rating downgrade, experienced by Kansas is changing minds all across the GOP universe. Most still believe in Laffer’s supply-side, trickle down theories, but are beginning to say that smaller cuts over a longer period of time might actually be better for their state.

Ohio Gov. John Kasich will roll out “responsible” tax plans that protect against revenue gaps. Wisconsin Gov. Scott Walker and Arizona’s new Republican governor are delaying big dreams of nixing the income tax as they face budget shortfalls. And Missouri Republicans, once jealous of their neighbor Kansas’ massive cuts, are thankful they trimmed less.
Call it the Brownback effect.
Republicans once idolized Kansas Gov. Sam Brownback as a tax cutting superstar — now he’s a lesson in what not to do.

Will North Carolina also heed the call to make tax changes evolutionary rather than revolutionary, or will our revenue shortfall go the way of Kansas? More tax cuts are scheduled to go into effect here in January, 2015. And it is easy to see that Brownback’s plan did not go as scheduled.

His own budget director says they may have to stop some of the tax cuts from going into effect....

Other governors are intent on making sure they don’t over-estimate revenues and don’t implement further tax cuts unless revenue goals hit a certain threshold. Even ALEC’s tax advisor, Jonathan Williams, said:

Republicans should tell constituents that “not all tax cuts pay for themselves” and warn about potential revenue shortfalls.

“What Republican generally learned about the Kansas experience was to make sure you have the budget handled before you embark upon the tax changes,” said Stephen Slivinski, a senior economist at the conservative Goldwater Institute....

“It’s more likely that we will not have an opportunity to do the same level of big bold tax cuts as we did in the past,” said Wisconsin House Speaker Robin Vos, a key (Gov. Scott) Walker ally. “It’s unlikely we’ll be able to eliminate the income tax.”

Arizona’s new Governor is facing:

..a potential $500 million budget shortfall and court order mandating the state spend more on education.

Will NCGA and Governor McCrory also learn that they need to:

Make sure you have the money????




Republicans in NC seem genetically challenged, or at least stuck in the terrible twos. Their approach to everything is "break it first" and claim to be Mr. Fix It.