Rolling the dice on tax cuts
It looks like my wife and I will see a drop in our Kansas income tax obligation next year. That’s good news, of course, but we wonder how much cash it will actually put in our pockets. Will it be enough to finance a nice vacation … or buy a new car? I suspect the answer is “no”.
Businesses across the state will also see a tax cut in the bill the Kansas Legislature sent to Governor Brownback this week. Will it be enough to buy some new equipment or upgrade what they have? Will it stimulate those business people to hire more workers, even if demand for their products doesn’t increase?
The new conservative power in the Kansas Statehouse and the governor’s office believe that dramatic tax cuts will generate enough business activity to generate new revenue for the state. But there is plenty of skepticism that there will never be enough revenue to avoid some really big budget shortfalls down the road.
Like many Kansans, I have serious doubts about this big tax-cut package.
Our thought for today is from Abraham Lincoln:
“You cannot escape the responsibility of tomorrow by evading it today.”