Attention Economy


Monday, July 3, 2017

Fiscal Policy Experiments – Kansas versus California

Kansas or California? By LAURA TYSON & LENNY MENDONCA
LAURA TYSON & LENNY MENDONCA note:
“Countless international, national, and state comparisons have demonstrated overwhelmingly that trickle-down economics is a regressive fantasy. The latest evidence of this comes from Kansas, where tax cuts signed by Governor Sam Brownback in 2012 have utterly failed to deliver growth.
Before making the same costly mistake, Trump should take a lesson from California – a progressive state that he loves to hate. California raised taxes for top earners in 2012 and has since enjoyed one of the strongest growth rates in the country. And now, California is significantly expanding its earned income tax credit, CalEITC, building on the proven record of the federal earned income tax credit (EITC).”