Sam Brownback Calls on Donald Trump to Mimic His Kansas Tax Plan
Controversial measure hasn’t led to the growth the governor had forecast for the Sunflower state
Sam Brownback, the Kansas governor whose tax cuts brought him political turmoil, recurring budget holes and sparse evidence of economic success, has a message for President-elect Donald Trump: Do what I did.In 2013, Mr. Brownback set out to create a lean, business-friendly government in his state that other Republicans could replicate. He now faces a $350 million deficit when the Kansas legislature convenes in January and projections of a larger one in 2018. The state’s economy is flat and his party is fractured... About half of pass-through business income in the U.S. is earned by the top 1% of households,
.. Mr. Brownback’s policy gave businesses an incentive to come to Kansas. But it also gave existing businesses a big tax break—or a reason to restructure to avoid paying taxes—without creating any new jobs.
.. In Washington, the Kansas idea—preferential business tax rates—is part of the Republican plan for the biggest federal tax overhaul in 30 years.
.. “They had many more owners of small businesses than they expected, because it doesn’t take much to reorganize yourself.”
.. At least 330,000 entities used the zero rate, more than 70% above projections.
.. The cuts have done little to jump-start Kansas’ economy overall—with growth for this year projected to be flat, compared with 2% GDP growth nationally. Ratings firm Standard & Poor’s twice downgraded Kansas’ bond ratings.
.. Those cuts contributed to dismal approval ratings for Mr. Brownback. He’s the country’s least popular governor, according to a 2016 MorningConsult survey.