Sunday, October 5, 2014

New Study, Kansas Not Alone in Revenue Shortfalls, States' Forecasting Worst Year on Record Since 1987

The Star and Dems should be eating a big plate of crow right about now.  Despite the real economic measures, they have been lamenting the Brownback tax cuts because the state's tax revenues have, on occasions, missed estimates.

But guess what?  Kansas isn't alone. In fact, this has been the worst year for accuracy by states forecasting tax revenues, according to a new study by the Pew Charitable Trust.

The study suggests the best way to move forward and build reliability into forecasting is to do exactly what Kanssas and Brownback is doing.. eliminate incomes taxes.

" States have relatively little opportunity to reduce volatility simply by restructuring their tax portfolios. Only by virtually eliminating the corporate income tax and significantly increasing reliance on the sales tax relative to the personal income tax could the typical state reduce revenue forecasting errors, and even then most tax combinations would not reduce forecast errors very much. Changing the structure of individual taxes may be more promising, but it can raise difficult tax policy issues. For example, making income taxes less progressive might also make them less volatile and easier to forecast, but that may run counter to distri- butional objectives that some policymakers hope for."

http://www.governing.com/news/headlines/gov-week-in-public-finance-stockton-the-deficit-shuffle-and-those-crazy-state-revenues.html

2 comments:

Anonymous said...

Expecting the right-wing Rockefeller Institute of Government to reach another conclusion would be like asking Kansas to properly fund education: ain't gonna happen.

theKansasCitian said...

Because throwing money at public schools works, just ask KCMO and D.C..

Curious, if KS funding is so bad, why do their students graduate and score significantly higher than Missouri students? 85+ percent proficiency for Kansas students compared to less than fifty percent for Missouri students.

http://www.kansascity.com/news/local/article1206168.html