Can Kansas Teach Nebraska an Economic Lesson?

Nov 25, 2016

Credit cfra.org

The Center for Rural Affairs warns cutting income tax rates could potentially break Nebraska’s economy in the middle of its slow-but-steady recovery.

As senior policy associate Brian Hansen writes, “those in Nebraska pushing for income tax cuts promise that doing so brings economic and job growth, but Kansas’ results make those promises ring hollow.”

Hansen points out that Nebraska’s neighbor to the south cut taxes on most businesses and wealthy residents in 2012. Since then, the Sunflower State has suffered budget shortfalls, credit downgrades, depletion of the state’s rainy day fund, school funding crises, and increases in both property and sales taxes that fell mostly on the backs of low-income Kansans.

Nebraska schools are ranked 49th in the U.S in funding per pupil. In his editorial, Hansen asked Nebraska leaders to focus on fully funding his state’s schools.