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56ktarget
07-16-2014, 04:51 PM
http://www.nytimes.com/2014/07/14/opinion/kansas-ruinous-tax-cuts.html


There was a windstorm of hasty excuses in recent weeks after Kansas reported that it took in $338 million less than expected in the 2014 fiscal year and would have to dip heavily into a reserve fund. Spending wasn’t cut enough, said conservatives. Too many rich people sold off stock in the previous year, state officials said. It’s the price of creating jobs, said Gov. Sam Brownback.


None of those reasons were correct. There was only one reason for the state’s plummeting revenues, and that was the spectacularly ill-advised income tax cuts that Mr. Brownback and his fellow Republicans engineered in 2012 and 2013. The cuts, which largely benefited the wealthy, cost the state 8 percent of the revenue it needs for schools and other government services. As the Center on Budget and Policy Priorities noted, that’s about the same as the effect of a midsize recession. Moody’s cut the state’s debt rating in April for the first time in at least 13 years, citing the cuts and a lack of confidence in the state’s fiscal management.


The 2012 cuts were among the largest ever enacted by a state, reducing the top tax bracket by 25 percent and eliminating all taxes on business profits that are reported on individual income returns. (No other state has ever eliminated all taxes on these pass-through businesses.) The cuts were arrogantly promoted by Mr. Brownback with the same disproven theory that Republicans have employed for decades: There will be no loss of revenue because of all the economic growth!


“Our new pro-growth tax policy will be like a shot of adrenaline into the heart of the Kansas economy,” he wrote in 2012. “It will pave the way to the creation of tens of thousands of new jobs, bring tens of thousands of people to Kansas, and help make our state the best place in America to start and grow a small business.”


But the growth didn’t show up. Kansas, in fact, was one of only five states to lose employment over the last six months, while the rest of the country was improving. It has been below the national average in job gains for the three and half years Mr. Brownback has been in office. Average earnings in the state are down since 2012, and so is net growth in the number of registered businesses.


Continue reading the main story
RECENT COMMENTS


Henry Miller, Libertarian 2 days ago
"The cuts, which largely benefited the wealthy, cost the state 8 percent of the revenue it needs for schools and other government services...
plasticonoband 2 days ago
The horrific reality that no one wants to face is that Tea Partiers are so committed to their magical thinking that they will go on...
William Jenkins 2 days ago
First of all, "you can't cut your way to prosperity" is an idiotic statement considering this isn't about prosperity but rather a balanced...
SEE ALL COMMENTS
With less money to spend, Kansas is forced to chop away at its only hope for real economic expansion: investment in public schools and colleges. While most states began restoring education funding after the recession, Kansas has cut K-12 spending by 2 percent over the last two school years, and higher education by 3 percent since 2012.


The evidence of failure is piling up around Mr. Brownback, whose re-election campaign is faltering because of his mistake. Yet he continues to cling to his magical ideology, pleading for more time. “It’s like going through surgery,” he told The Wall Street Journal last month. “It takes a while to heal and get growing afterwards.”


But it’s not clear the patient can recover from this surgery — the reserve fund, in fact, is likely to nearly run dry next year. As Kansas has clearly shown, states cannot cut their way to prosperity. They need to use every tool of government to nurture growth, and those tools require money.


Meet The New York Times’s Editorial Board »


A version of this editorial appears in print on July 14, 2014, on page A18 of the New York edition with the headline: Kansas’ Ruinous Tax Cuts. Order Reprints|Today's Paper|Subscribe

NorthCarolinaLiberty
07-16-2014, 06:18 PM
So it's an article from a consumer publication with no sourced facts or documented numbers to back what it says about a declining economy. It is however, heavy on the figures for the people who get handout money.

56ktarget
07-16-2014, 06:23 PM
? All the facts are clearly sourced... You might want to click the article before saying something like that...

NorthCarolinaLiberty
07-16-2014, 06:27 PM
I did click the article. There is no access unless you have a paid subscription.

56ktarget
07-16-2014, 06:35 PM
Try typing the title of the article (Kansas's ruinous tax cuts) on google and click the link. Those count as freebies, not requiring a sub.

NorthCarolinaLiberty
07-16-2014, 06:43 PM
Try typing the article?!! It's your thread. I read the article. That's all I see.

You got anything else?

56ktarget
07-16-2014, 06:46 PM
Lmao, if you cant bother reading the article to get the citations, dont bother responding with your trollery.

angelatc
07-16-2014, 06:47 PM
They had reserves?


Fuck that.

angelatc
07-16-2014, 06:51 PM
Without the tax cuts, the Kansas economy would have been in far worse shape:

http://www.thenewamerican.com/economy/sectors/item/18685-kansas-tax-cuts-already-improving-the-state-s-economy


Such reinvestment is beginning to show up in the statistics. According to the National Conference of State Legislatures, in May Kansas touted an unemployment rate of just 4.8 percent, compared to 5.1 percent in Texas, 5.8 percent in Colorado, and 6.8 percent in Arizona. It’s also way below the national unemployment rate of 6.1 percent.Of special interest, however, is the unemployment rate of next-door-neighbor Missouri which shares not only a border with Kansas but also more than half of Kansas City. Missouri, which didn’t cut income taxes (they remain at six percent on taxable incomes above $9,000) suffers from an unemployment rate of 6.6 percent, and climbing.

A close look at what is happening in the Kansas City metro area is revealing: From May 2011 through May 2012 (June numbers from the Bureau of Labor Statistics won’t be published until July 18), almost three-fourths of job growth took place in Kansas City,Kansas. What’s even more impressive, however, is that Kansas City, Kansas has one-fourth the population of Kansas City, Missouri: 145,000 compared to 476,000.

As Will Upton modestly concluded in his blog at Americans for Tax Reform, “It is arguable that the 2012 spike [in employment on the Kansas side of town] was caused by businesses anticipating a better tax climate in Kansas after the 2012 tax cuts.”

Liberals should be deported. Enough of their bullshit.

NorthCarolinaLiberty
07-16-2014, 06:52 PM
Lmao, if you cant bother reading the article to get the citations, dont bother responding with your trollery.


I did read the article. There are no citations. It's an editorial.

Maybe if you weren't so busy amusing yourself, then you would have bothered to see that in your own thread.

angelatc
07-16-2014, 06:54 PM
I did read the article. There are no citations. It's an editorial.

Maybe if you weren't so busy amusing yourself, then you would have seen that in your own thread.

From the article linked above:


The cast of fools promoting this nonsense in the national media seized upon a single piece of data — that Kansas state government revenues for the current fiscal year have dropped slightly — to make the case that Kansas was soon going to disappear into a morass of unemployment resulting in massive cutbacks in state services for roads, education, and such. Leading the parade of such Keynesian dreamers was Michael Hiltzik, author of The Economy Hub for the Los Angeles Times. He called Kansas a graveyard, thanks to Brownback, Laffer, and those knuckle-dragging tea partiers:

Liberals are the stupidest people on the planet.

56ktarget
07-16-2014, 06:56 PM
You know you can click on the numbers right? And then it directs you to the citation (source)? Have u never read an article on the NYT?

NorthCarolinaLiberty
07-16-2014, 07:10 PM
You know you can click on the numbers right? And then it directs you to the citation (source)? Have u never read an article on the NYT?

No, I don't get economic information from consumer publications. It's because (among other things) they simply quote one another, just like they did here. Their source is another editorial--this time, the Kansas City Star.

Anyway, the KC Star provided a whole lot more context. They said:

"Last November, U.S. Bureau of Labor Statistics showed Kansas had reached a post-recession high in total nonfarm employment with 1,384,900 jobs.

But in the latest report ending in May, the number had fallen to 1,383,300, or a loss of 1,600 jobs.

While that’s a small sum, Kansas was one of only five states in the nation to shed employment over that time."



Guess the NY Times forgot to mention the "small sum" of jobs that was lost. I ain't got a calculator handy, but I think the percentage of 1600 into 1.3 million must be in the thousands of a percent. So the budget was cut by 8%, but the loss of jobs was .001% or something.

Maybe all the government money they cut was for the 1600 government jobs they cut.

56ktarget
07-16-2014, 07:13 PM
But the nyt editorial isn't arguing that point. They're arguing that the tax cuts decreased revenue, which in turn forces spending cuts.

NorthCarolinaLiberty
07-16-2014, 07:22 PM
But the nyt editorial isn't arguing that point. They're arguing that the tax cuts decreased revenue, which in turn forces spending cuts.

They said spending was down and jobs were lost. They said the neighboring states had increased employment.

NorthCarolinaLiberty
07-16-2014, 07:34 PM
Kansas Gov cuts taxes, disaster strikes

By the way--where's the disaster?

pcosmar
07-16-2014, 08:36 PM
They're arguing that the tax cuts decreased revenue, which in turn forces spending cuts.

you say that like it's a bad thing.

Origanalist
07-16-2014, 10:24 PM
Bring back Fire11.

Weston White
07-17-2014, 03:10 AM
1. Aren’t school funds paid through property taxes, or at least primarily so?
2. This reduction seems to be directed at businesses and retailers, but not so much at consumers. Therefore, while the base for business has been increased, the base for its consumption has been left behind to bottleneck the growth process.
3. Business still have overly high federal taxes to deal with, a reduction in state taxes is always nice, but pales in comparison. Is that really enough to drive in newly interested business, which should be the real test?

Acala
07-17-2014, 09:38 AM
Falling government revenue is a good thing. Every dollar in government hands fuels cronycapitalist corruption, violence, and a more ignorant population.

oyarde
07-17-2014, 09:55 AM
No disaster . More cuts needed, spending and taxes.

NorthCarolinaLiberty
07-17-2014, 11:25 AM
Funny how the liberal will admit he has co-dependency with government. He loves his government and tells you he wants more of it. There are others who love the government, but pretend otherwise.

Guess the problem is that these co-dependents think that this type of relationship is a healthy one. The idea that the OP sees somebody cutting him off as a "disaster" really highlights the dysfunctional nature of the relationship.

Cleaner44
07-17-2014, 11:56 AM
Oh noes... the people of Kansas were allowed to keep their money instead of handing over to the politicians! Oh the humanity! When will people learn that the only way to avoid financial disaster is to hand over all of their money to their kind overlords in the ivory tower of the capitol to spend for them. Only politicians can spend money in Kansas in a way that benefits the people of Kansas. When will these fools ever learn? :rolleyes:

Acala
07-17-2014, 02:03 PM
What the OP fails to realize is that most people on this site think Art Laffer is an idiot. The purpose of cutting taxes is not to increase government revenue. The purpose of cutting taxes is to stop stealing money from the people who earn it.

oyarde
07-17-2014, 10:50 PM
Bring back Fire11.

I would prefer that to this .

Boshembechle
07-22-2014, 05:47 PM
Not sure why this is a bad thing.

Boshembechle
07-22-2014, 06:29 PM
That's in no way proof that the conservative tax cut policy doesn't work. Louisiana and Florida are examples of it's success.

There are a few reasons it didn't work here:

1. They cut too much without cutting some spending.

2. Economic growth doesn't happen quickly..takes a few years to really take effect, especially in a piss poor national economy and federal regulations being too stiff.

3. Kansas has very little to attract new businesses, even with a favorable tax policy to business. Kansas fricking sucks....and people aren't gonna grow more corn there because taxes are lower