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Kansas tax legislation

Dear Editor,
The news media reports that Governor Brownback stated the newly enacted tax legislation will expand employment and bolster state revenue. The Legislative Research Department projects the opposite: that it could result in deficits of nearly $2.5 billion in fiscal year 2018. The difference is that the Legislative Research Department used static scoring while the Governor’s staff likely used dynamic scoring.
Dynamic scoring assumes that households and firms will alter their behavior due to the tax cut. Dynamic scoring is more accurate than static scoring when the econometric model correctly captures how households and firms will react ...

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