Taxes usually pay for services.

Right now, they would pay for the coming shortfalls in revenues.

Lowering taxes won't "create jobs" unless there's sufficient demand to motivate companies to start hiring. The demand has been depressed by the deflating real estate bubble, which hasn't stopped deflating yet.

We may see some improvement in the jobs situation later in the year, but I suspect it'll driven be for providing things to out-of-state consumers. Exports to other states that haven't been rocked so hard by the dotcom and housing bubbles. We won't see a reversal until this anchor of debt is cut loose, either through foreclosures or cram-downs.