Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
How One State Tax Break Cost More Than It Generated
Episode 53 of The Fiscal Policy Podcast digs into a specific case study: Kansas's 2012 income tax cut experiment. Lucas and Luna walk through the numbers—how the state projected $280 million in annual dynamic growth but instead lost $700 million in revenue, triggering budget cuts to education and infrastructure. They explore why the Laffer Curve logic failed in practice, the role of inelastic service-sector economies, and what other states like Oklahoma and North Carolina learned from Kansas's mistake. Fresh angle: why tax-cut simulations often overestimate behavioral responses when…
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