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The Republican Party Must Answer for What It Did to Kansas and Louisiana

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  • The Republican Party Must Answer for What It Did to Kansas and Louisiana

    http://nymag.com/daily/intelligencer...to-kansas.html

    This article is a must read for any Republican. Total failure of Republican policies have left Kansas and Louisiana in utter ruin. The GOP won, implements their tax cuts for the rich nonsense and guess what...they didn't pay for themselves. The worst part is that no GOP candidate has been asked about this. This isn't some decades long erosion of manufacturing that we see in places like Detroit. This is a total failure from policies implemented just a few years ago.

    In 2010, the tea-party wave put Sam Brownback into the Sunflower State’s governor’s mansion and Republican majorities in both houses of its legislature. Together, they implemented the conservative movement’s blueprint for Utopia: They passed massive tax breaks for the wealthy and repealed all income taxes on more than 100,000 businesses. They tightened welfare requirements, privatized the delivery of Medicaid, cut $200 million from the education budget, eliminated four state agencies and 2,000 government employees. In 2012, Brownback helped replace the few remaining moderate Republicans in the legislature with conservative true believers. The following January, after signing the largest tax cut in Kansas history, Brownback told the Wall Street Journal, “My focus is to create a red-state model that allows the Republican ticket to say, 'See, we've got a different way, and it works.' "
    As you’ve probably guessed, that model collapsed. Like the budget plans of every Republican presidential candidate, Brownback’s “real live experiment” proceeded from the hypothesis that tax cuts for the wealthy are such a boon to economic growth, they actually end up paying for themselves (so long as you kick the undeserving poor out of their welfare hammocks). The Koch-backed Kansas Policy Institute predicted that Brownback’s 2013 tax plan would generate $323 million in new revenue. During its first full year in operation, the plan produced a $688 million loss. Meanwhile, Kansas’s job growth actually trailed that of its neighboring states. With that nearly $700 million deficit, the state had bought itself a 1.1 percent increase in jobs, just below Missouri’s 1.5 percent and Colorado’s 3.3.


  • #2
    First of all, New York Magazine is the typical liberal rag and that is a very typically liberal biased article designed to inflame emotions. Second, those same Kansans who have been "devastated" by Brownbacks policies voted for for more of it when they picked Cruz over Trump. And in Louisiana, Cruz tied Trump. Also, in Louisiana, the Democrat Establishment candidate beat Sanders handily. If you have ever driven across Kansas, which sadly, I have many times, you will notice that it is vast, and I mean vast areas of farm land dotted occasionally with a town. There are a couple of big cities, relatively speaking but the majority of the state is agriculture. This whole claim of cutting taxes for the wealthy is just a wealth envy gimmick. The wealthy are the only ones paying the taxes so if you cut taxes, obviously you will be cutting them for the wealthy. I'm sure that, like the rest of the states in the country, the government in Kansas is hugely bloated and needed cutting.

    Kansas didn't actually cut it's state income tax rates until 2013 and it reduced them on everyone who pays taxes, not just the wealthy. Schools are funded by local property taxes and not state income taxes so if schools close early due to budget restraints, it is a local tax problem or a bloated administration problem or simply bad management. I noticed the article didn't go into where those schools were, I would venture a guess that they are in Kansas City.

    From a broader regional view, Kansas still remains a relatively high tax state with a top rate of 4.9% – at least until further income tax rate reductions kick in. Colorado, by comparison has a flat rate of 4.63%. Prior to 2013, Kansas was higher – at 6.3% – than Missouri which has a top rate of 6%. Additionally, the current 4.9% rate is relatively on par with Oklahoma which has a top rate of 5.25% - though, again, prior to 2013 the top rate in Kansas was higher.
    While the state budget shortfall has made news, there is strong evidence that most of the shortfall can be traced to federal tax policy changes and not state changes – though Josh Barro writing at The New York Times disagrees. CBO data, that I have detailed here, points to a shift in capital gains filings out of 2013 and into the end of 2012 to avoid President Obama’s “Fiscal Cliff” which resulted in an increase in the federal capital gains tax. This left many states – from California to Connecticut – with shortfalls and downward revisions in revenue projections this past tax year. Long story short, other states who have not enacted tax reforms like Kansas are also struggling with the accuracy of their revenue projections this year.
    One final note, Kansas is required by law to have a balanced budget, unlike the Federal government. A significant budget surplus this year will alleviate much of the concern with the lower than expected revenue collections. Opponents of tax reform and spending interests want to try and write an early obituary for the Kansas tax reform. Unfortunately for them, the tax cuts are working and will continue to improve the Kansas economy for years to come.
    Read more: http://www.atr.org/kansas-tax-cuts-a...#ixzz43LwrAg1O

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