January 8, 2015 by Chris Kite
Another quiet little change the Republicans made their first few days in power was to change the way the CBO scores the economic impact of bills. They are now going to make dangerous and incorrect assumptions that lowering taxes increases future revenue. Much like Wisconsin and Kansas did.
You may be familiar with the problems in Kansas. After massive tax cuts, the revenue growth Republicans promised didn’t happen. So now they are slashing state spending on infrastructure, pensions, and other things. They’re facing a $640M shortfall next cycle, but playing games to move money around so it doesn’t look so bad. In essence, they are kicking the can down the road.
Wisconsin is less publicized because it hasn’t actually hit yet. But the next two year budget cycle is predicted to have a $2.2B shortfall. Wisconsin requires a balanced budget, and Walker has big ambitions, so you can bet he won’t admit the tax cuts have hurt the state. Instead, he will look for ways to cut the budget. Perhaps instead of slashing pay and benefits of teachers and public workers he will just enslave them all.