Isn’t this interesting?

Is Donald Trump about to turn America into Kansas? It’s a question some worried people who live in the state are asking as the Republican party pushes through the biggest tax overhaul in a generation – an overhaul that, they claim, bears an uncanny resemblance to a tax plan that left their midwestern home in disarray.

After a failed economic experiment meant to boost economic growth blew a hole in the Kansas budget as big as a prairie sky (a $350m deficit in the current fiscal year and nearly $600m in the next) state jobs and services have been slashed.

Total spending is some $15 billion. A 2% of budget deficit isn’t “as big as a prairie sky.” GVA (ie, state GDP) is $150 billion or so. 0.2% of GDP deficit?


6 thoughts on “Isn’t this interesting?”

  1. Seconding John B, interrupting the flow of loot to state jobs and services wasn’t a bug but a feature. Changes in one state’s tax policy cannot cause a recession–otherwise, California would be in the mother of all of them. Even out-migration from California is gradual and not tidily paired up with a single budget cycle. In-migration based on a more favorable tax climate, and out-migration of those less confident of collecting freebies, are both positive for the economy. New Hampshire also lowered business taxes in the last biennium, and the resulting “disarray” is positive, though not explosive compared to surrounding states. NH also lowered cigarette taxes $0.10 a pack, met with hysteria that it correlated with a national retail price increase.

  2. Bloke in Costa Rica

    Turning the US into Kansas instead of a continent-sized version of the Mos Eisley cantina would be a massive step forward.

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