The Budget and Tax Center is warning NC off following the downhill spiral in Kansas. This came out before the official NCGA analysis of NC’s numbers came out on 7/24/14. And again, the NCGA memo just includes estimates of personal income – we do not know how much NC will lose from the corporate tax cuts.
“In 2012, Kansas passed huge income tax cuts – considered perhaps the nation’s largest state tax cut ever – that were estimated to reduce annual revenue for public investments by more than $800 million. The reality in Kansas has been worse than expected, however. In fiscal year 2014, Kansas officials report that the state brought in $338 million less than anticipated. The lack of adequate revenue will likely mean continued cuts to public schools, colleges and universities, and healthcare services for Kansans. Cuts to these programs in Kansas and their damage to families and communities have been well documented and resulted in one high profile court case which determined the underfunding of public education unconstitutional.”