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Pensacola Discussion Forum » Politics » What's The Matter With Kansas And Its Tax Cuts? It Can't Do Math

What's The Matter With Kansas And Its Tax Cuts? It Can't Do Math

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boards of FL

boards of FL

http://www.forbes.com/sites/beltway/2014/07/15/whats-the-matter-with-kansas-and-its-tax-cuts-it-cant-do-math/


Kansas Governor Sam Brownback and his state legislature have embarked on a wonderful natural experiment. Once again we are testing the question: Can tax cuts pay for themselves? The answer– yet again– is a resounding no.

We’ve tried this experiment time and again. And tax cut proponents such as economist Art Laffer continue to insist they can turn fiscal dross to gold: Cut taxes deeply enough and the resultant boom in economic activity will boost revenues. Magic. Painless. Everything a politician would ever want.

Except this is fiscal snake oil. Over the past few years, Brownback and the Kansas legislature have gone all-in on this theory. The good news: They have left little room for ambiguity (though Brownback and his defenders are scrambling to find some, given the dismal results of their ambitious experiment).

The tax cuts in Kansas have been breathtaking. In 2012, at Brownback’s urging, the legislature cut individual tax rates by 25 percent and repealed the tax on sole proprietorships and other “pass-through” businesses. It also increased the standard deduction (though it eliminated some individual credits as well).

In 2013, the legislature cut taxes again. It passed a measure to gradually lower rates even more over five years. By 2018, the top rate, which was 6.45 percent in 2012, will fall to 3.9 percent. It also partially restored some of the credits it eliminated in 2012. This time, it did raise some offsetting revenue for the first few years but far less than the statutory tax cuts. The Center on Budget & Policy Priorities wrote up a nice summary of all the tax changes.

So what happened after all those tax cuts? Revenues collapsed.

From June, 2013 to June, 2014, all Kansas tax revenue plunged by 11 percent. Individual income taxes fell from $2.9 billion to $2.2 billion and all income tax collections plummeted from $3.3 billion to $2.6 billion, a drop of more than 20 percent.


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boards of FL

boards of FL

After reading the above, watch this movie clip. Think about republicans, tax cuts, and their "TAX CUTS INCREASE REVENUES!!!1111" mantra as you watch this.


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Floridatexan

Floridatexan


Great video and great analogy, Boards.

http://www.politico.com/story/2014/07/kansas-2014-election-sam-brownback-108952.html?hp=t2_3

GOP moderates revolt in Kansas

WICHITA, Kan. — "Moderate Republicans have been kicked around by the tea party for years in Congress and the states.
Here in Kansas, they’re fighting back.

A moderate GOP uprising is in full swing against Gov. Sam Brownback, the fierce fiscal and social conservative whose policies led to a purge of middle-of-the-road Republicans from the Legislature early in his tenure.
In a rare and surprising act of political defiance on Tuesday, more than 100 Republicans, including current and former officeholders, endorsed Brownback’s opponent, statehouse Democratic leader Paul Davis. Polls show the challenger with a surprisingly strong shot at taking out Brownback in November..."


Read more: http://www.politico.com/story/2014/07/kansas-2014-election-sam-brownback-108952.html#ixzz37eONnKPr

boards of FL

boards of FL

Floridatexan wrote:In a rare and surprising act of political defiance on Tuesday, more than 100 Republicans, including current and former officeholders, endorsed Brownback’s opponent, statehouse Democratic leader Paul Davis.


Looks like Kansas may have quite a few 2seaots.


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We now owe the federal reserve about 4.4 TRILLION dollars... with interest. Generations will pay for the last dozen years.

Floridatexan

Floridatexan


Yeah...too bad about that stolen election in 2000.

2seaoat



We now owe the federal reserve about 4.4 TRILLION dollars... with interest. Generations will pay for the last dozen years.
Nonsense. We are at or below 2% inflation. We will be paying that future debt with inflated dollars. There is a point where debt can consume us, but we are not there. If anything, we are paying the debt down too quickly, and in that process further throwing cold water on the economy.

2seaoat



Looks like Kansas may have quite a few 2seaots.


The whole country has main street Republican businessmen who have seen their town's main street be decimated as the local country club across America would have small business owners who belonged and thrived as those mostly family owned business produced products and services for the community.

Now all across the country the main streets have been decimated by trickle down lunacy, and subsidy for the large banks move into town, consolidate with local banks who used to make commercial loans to main street, and instead they take the deposits paying no money to depositors except a pittance of interest, and then when that businessman needs a line of credit, so the local Wal Mart does not close them down.......sorry.

No, the racist baiting of the crazies which allows the Republican Party to shill for the largest corporations which are stealing subsidies and loopholes by the bushel basket, have finally starting to settle in with main street Republicans. They are piszed. They mostly blame the President, but they also did not get where they are today by not understanding basic math, and understanding stupid propaganda which makes no sense. The traditional Republicans are going to get their party back. They are not going to buy into the special interest agenda which has destroyed Main Street. People want straight talking common sense without the racism, and they want solutions and not obstruction. The tip of the iceberg is starting to appear, and once that pragmatic common sense takes the party back, the American Middle Class will rally behind the party......but to vote for anybody for congress or state office who is part of this crazy 15 year wasteland of Dixiecrat influence............is truly insane.

Markle

Markle

boards of FL wrote:http://www.forbes.com/sites/beltway/2014/07/15/whats-the-matter-with-kansas-and-its-tax-cuts-it-cant-do-math/


Kansas Governor Sam Brownback and his state legislature have embarked on a wonderful natural experiment. Once again we are testing the question: Can tax cuts pay for themselves? The answer– yet again– is a resounding no.

We’ve tried this experiment time and again. And tax cut proponents such as economist Art Laffer continue to insist they can turn fiscal dross to gold: Cut taxes deeply enough and the resultant boom in economic activity will boost revenues. Magic. Painless. Everything a politician would ever want.

Except this is fiscal snake oil. Over the past few years, Brownback and the Kansas legislature have gone all-in on this theory. The good news: They have left little room for ambiguity (though Brownback and his defenders are scrambling to find some, given the dismal results of their ambitious experiment).

The tax cuts in Kansas have been breathtaking. In 2012, at Brownback’s urging, the legislature cut individual tax rates by 25 percent and repealed the tax on sole proprietorships and other “pass-through” businesses. It also increased the standard deduction (though it eliminated some individual credits as well).

In 2013, the legislature cut taxes again. It passed a measure to gradually lower rates even more over five years. By 2018, the top rate, which was 6.45 percent in 2012, will fall to 3.9 percent. It also partially restored some of the credits it eliminated in 2012. This time, it did raise some offsetting revenue for the first few years but far less than the statutory tax cuts. The Center on Budget & Policy Priorities wrote up a nice summary of all the tax changes.

So what happened after all those tax cuts? Revenues collapsed.

From June, 2013 to June, 2014, all Kansas tax revenue plunged by 11 percent. Individual income taxes fell from $2.9 billion to $2.2 billion and all income tax collections plummeted from $3.3 billion to $2.6 billion, a drop of more than 20 percent.

They still have a state income tax do they not? Which states are growing in spite of all President Barack Hussein Obama's misguided efforts?

2seaoat



They still have a state income tax do they not? Which states are growing in spite of all President Barack Hussein Obama's misguided efforts?



All of them because under President Obama there has been a reversal of the economic collapse and the nation has seen economic growth. Where is your thank you Mr. President?

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