Here’s another consequence of Gov. Sam Brownback’s push to eliminate state income taxes: a lower bond rating. Moody’s Investors Services has downgraded bond ratings for a Kansas Department of Commerce program that used to pay for a worker-training program. The lower rating affects about $200 million in outstanding debt. Because the bonds are backed by income-tax withholdings, “efforts to eliminate the state income tax without defeasing the debt or substituting a new revenue source will expose bondholders to risks greater than previously anticipated,” the credit rating service reported this week. Drip, drip, drip.
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