A Creighton University economist is suggesting Iowa legislators should tread carefully as they craft a tax cut package. Republican lawmakers like Senate G-O-P Leader Bill Dix point to state tax cuts of the 1990s as proof cutting taxes will spark the economy and lead to state tax revenue growth. Creighton’s Ernie Goss says that’s true “in some cases,” but he’s not predicting that for Iowa now.
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Goss says Kansas Republicans enacted a plan in 2012 that dramatically cut taxes.
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Goss says despite deep cuts in education and other areas over the past few years, the state budget deficit in Kansas is now 900 million dollars. Republicans in Iowa says one difference now is the extra taxes the state should collect due to FEDERAL tax law changes. Goss cautions against counting on that “windfall” — as he predicts it won’t be as large as predicted.