The challenge
Kansas wanted to boost economic growth and jobs.
The case
In 2012 Kansas cut income tax rates sharply and eliminated taxes on certain business income, with Governor Sam Brownback calling it a 'real live experiment' that would supercharge growth. The promised boom didn't come: job and economic growth lagged neighboring states, revenues fell far short, and the state cut spending, drew down reserves and had its credit rating downgraded. In 2017 the Republican-led legislature reversed most of the cuts, overriding the governor's veto. CBPP reported Kansas' private-sector job growth was 4.2 percent between December 2012 and May 2017, less than half the 9.4 percent national rate.
Why it didn't work
Tax cuts did not pay for themselves. Exempting some business income also encouraged people to reclassify wages to avoid tax rather than create new activity.
Sources
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