Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
Why US States Keep Cutting Taxes and What It Costs
Lucas and Luna dig into the wave of state-level income tax cuts sweeping the country — from Florida to Kansas to North Carolina — and ask whether the promised economic boom actually materializes. They walk through Kansas's failed 2012 experiment, the contrasting outcomes in states like California and New York, and the fiscal traps lurking when revenues slow. Lucas cites a 2025 Federal Reserve study showing that state tax cuts boosted business formation by just 0.3 percent while reducing education spending by 6 percent. Luna pushes back on the 'race to the bottom' narrative…
The skinny
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