I love it when a good plan comes together!
So, yesterday, I gave a brief explanation of the Laffer Curve, as I see it. And, as I see it, none of what I stated can be argued against. If anyone wishes to, then, by all means, please do so.
But, what I stated yesterday is largely for academic thought. But, there are real world examples of the benefits of knowing such obvious thoughts. Present day Kansas, is one. And, this has the leftards in a huge tizzy.
Make no mistake, and I can’t overstate this. The elections in Kansas, this year, will have global implications. The arguments are basic and profound. And while many conservatives are not watching, every leftard in the world is. Indeed, many pretend conservatives have exposed themselves in order to attack Governor Brownback and what he’s accomplished.
To give you a brief and incomplete history of Brownback, I’ll tell you he’s a former US Senator from Kansas. He could still be senator if he so chose to do so. But, he didn’t. You see, Brownback is a supporter of term limits and after winning two consecutive full terms in the US Senate, he stepped down. (He won a special election to the Senate when Dole stepped down) He came back to serve Kansas as governor.
As governor, Brownback was able to force tax cuts never before seen in Kansas. And, was much needed. His message has been pro-growth.
Now, before I go on any further, I want to state this clearly. What Brownback has accomplished cannot be seen as a confirmation, nor, a refutation of Laffer. I cannot overstate this, either. The fact of the matter is, Kansas doesn’t live in a vacuum. There are external forcings beyond the control of Kansas, such as the fact we are part of the US, and therefore subject to Obama’s government hating and moving against places such as Kansas. Kansas, being a semi-rural state is subject to global crop production as part of our economic health. There are a plethora of other external forcings.
All of that stated, the left is attempting to use Kansas as the “example” as to why Laffer doesn’t work.
The lies and mischaracterizations from the left and other sources supposedly conservative has been atrocious. This is what pisses me off about some conservatives. THEY’RE NOT PAYING ATTENTION!!!!! And, they go on about stupid things when they’re not watching the pea under the shell, or what the people who are the enemy of freedom are doing.
Consider a few of these things …….
Here’s what USA Today had to say about this in August …..
GARDEN CITY, Kan. — The Kansas governor’s race is like a two-part referendum.
Part one: The fate of Republican incumbent Sam Brownback.
Part two: The political impact of an economic issue that Republicans have been using for more than four decades — tax cuts. …….
This, of course, is a complete and total lie. For four decades, the Repubs have essentially controlled Kansas. But, we have every tax a person can conceive. And, while I’m sure there have been tax cuts along the way, I can’t remember any for any tax we have on the state level. I certainly don’t recall any income tax cut, which is essentially what we’re talking about, here.
Then, there’s this from a supposed “think tank”.
Lessons for Other States from Kansas’ Massive Tax Cuts
March 27, 2014
Tax cuts enacted in Kansas in 2012 were among the largest ever enacted by any state, and have since been held up by tax-cut proponents in other states as a model worth replicating. In truth, Kansas is a cautionary tale, not a model. As other states recover from the recent recession and turn toward the future, Kansas’ huge tax cuts have left that state’s schools and other public services stuck in the recession, and declining further — a serious threat to the state’s long-term economic vitality. Meanwhile, promises of immediate economic improvement have utterly failed to materialize.
As other states consider large tax cuts, they should heed these key lessons from Kansas:
- Deep income tax cuts caused large revenue losses. Kansas’ tax cuts this year are costing the state about 8 percent of the revenue it uses to fund schools, health care, and other public services, a hit comparable to a mid-sized recession. State data show that the revenue loss will rise to 16 percent in five years if the tax cuts are not reversed.
- The large revenue losses extended and deepened the recession’s damage to schools and other state services. Most states are restoring funding for schools after years of significant cuts, but in Kansas the cuts continue. Governor Sam Brownback recently proposed another reduction in per-pupil general school aid for next year, which would leave funding 17 percent below pre-recession levels. Funding for other services — colleges and universities, libraries, and local health departments, among others — also is way down, and declining.
- The tax cuts delivered lopsided benefits to the wealthy. Kansas’ tax cuts didn’t benefit everyone. Most of the benefits went to high-income households. Kansas even raised taxes for low-income families to offset a portion of the revenue loss; otherwise the cuts to schools and other services would have been greater still.
- Kansas’ tax cuts haven’t boosted its economy. Since the tax cuts took effect at the beginning of 2013, Kansas has added jobs at a pace modestly slower than the country as a whole. …..
Well, there’s a problem with this babbling stupidity. Much of our schools’ revenue doesn’t come from our income taxes. It come from our property taxes which are imposed and administered by the counties, not the state. Another large source of income for our schools is the lottery receipts. Most of the money to the schools, provided by the state is simply money passed on from the feds. Our state income taxes have nearly zero impact on our school funding. Brownback’s tax cuts had nothing to do with our property taxes.
And then, we see crap like this from Forbes …. yeh, Forbes, back in July.
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). …….
Again, I can’t overstate how many people are watching, lying, mischaracterizing, and doing everything they can to sway the elections in Kansas.
As I was contemplating how to frame this post, on time, comes Mother Jones!
Kansas Gov. Sam Brownback’s reelection campaign is in serious trouble. Thelatest poll has the incumbent Republican losing to his Democratic opponent by 4 percentge points.
Read more about how Sam Brownback’s red-state experiment could turn Kansas purple.
As I explained in our November/December issue, Brownback’s woes can largely be traced back to the drastic tax cuts for the wealthy that he pushed through the state legislature. Kansas’ tax rate for top earners dropped from 6.45 to 4.9 percent, with further future cuts baked in. The cuts were even more generous for business owners, entirely wiping away their tax burden for pass-through income.
Brownback sold his tax cuts on supply-side promises of unbounded future growth, but the results have been less than stellar: While the state’s unemployment rate, like the national jobless rate, has dropped over the past few years, Kansas’ economic growth has lagged behind its neighbors’.
Despite these disappointing results, the state has settled on enticing out-of-state businesses with its low tax rate. Check out this full-page ad from the Kansas Department of Commerce, scanned from an issue of the US Small Business Administration’s magazine Small Business Resource by a reader: …… (you can read it by going to the link– suyts)
That ad’s pitch—”one of the most pro-growth tax policies in the country” leads to “a perfect state”—lines up with the theories of free-market economist Arthur Laffer, the grand poobah of Ronald Reagan’s trickle-down economics. Brownback cited Laffer’s work to justify his cuts. During the thick of the legislative debate, he flew Laffer in for a three-day sales pitch, costing the state $75,000.
When I called Laffer in August, he excitedly proclaimed that Brownback’s cuts would prove a resounding success. “I’ll make you a very large bet that Kansas will improve its relative position to the US over, let’s say, eight years, hands down. I’ll bet you with great odds,” he told me. “I feel very confident that what Sam Brownback has done is and will be extraordinarily beneficial for the state of Kansas.”
As Laffer saw it, low tax rates would entice out-of-state residents and businesses to relocate. Laffer himself had moved to Tennessee sight unseen nine years ago, fleeing from California because of the Volunteer State’s lack of income tax. “In someplace like Kansas, I don’t think the income tax makes any sense whatsoever,” Laffer said. “That’s what we’re trying to move toward in Kansas. The income tax is a killer.”
Except that magical migration hasn’t developed yet. In August, the state added just 900 jobs, with a tepid growth rate of just half a percent for the full year. Maybe I should have made that bet with Laffer.
No one ever said the effects of a tax cut would be immediately seen. Laffer is talking 8 years and the idiot MJ writer quotes an August number.
You see what they’re doing?
Brownback’s tax cuts started, but, don’t fully take effect until years later. They are incremental. None of the jackasses above, nor, any anti-Laffer idiot I could find noted this. All of them lied and mischaracterized the cuts in various manners.
Now to the good stuff!
Brownback was elected in 2010 when the state found us in debt for the first time in a very long time. Odd, but, our credit rating wasn’t cut until recently. But, where are we at now? Well, we don’t know what the 2014 numbers will be, but, in 2013 we were $534 million to the good. …….. We were down $27.1 million in 2010 (Sibelius), now we’re $ 1/2 billion to the good. (official state pdf) Yeh, poor Laffer and Brownback didn’t know about how to optimize revenue.
But, let’s look at the brass tacks.
Oh, oh!!!! Wait!!!! How’s that possible?!?!?!?!?
Now, mind you, the largest tax cuts started in 2012. …… So, let’s look at how we did in 2013.
Wait!!!! No way!!!!! You mean we were able to make drastic cuts and still increase government revenue?!!?!??!?!?!
But, then, there’s this ……..
Uhmm…….. well, what now, bitches? How’s that possible given all of the (false) information from the lunatics above?
Graphs and numbers provided by the State of Kansas. (pdf)
But, what about jobs and such? And how much Kansas sucks for that?
Unemployment Rates for States
Rank State Rate 1 NORTH DAKOTA 2.8 2 NEBRASKA 3.6 2 SOUTH DAKOTA 3.6 2 UTAH 3.6 5 VERMONT 4.1 6 HAWAII 4.3 6 MINNESOTA 4.3 8 NEW HAMPSHIRE 4.4 9 IOWA 4.5 10 WYOMING 4.6 11 IDAHO 4.7 11 MONTANA 4.7 11 OKLAHOMA 4.7 14 KANSAS 4.9 15 COLORADO 5.1 16 TEXAS 5.3 17 MAINE 5.6 17 VIRGINIA 5.6 17 WASHINGTON 5.6 17 WISCONSIN 5.6 21 OHIO 5.7 22 INDIANA 5.8 22 LOUISIANA 5.8 22 MASSACHUSETTS 5.8 22 PENNSYLVANIA 5.8 26 ARKANSAS 6.3 26 FLORIDA 6.3 26 MISSOURI 6.3 29 MARYLAND 6.4 29 NEW YORK 6.4 29 SOUTH CAROLINA 6.4 32 DELAWARE 6.5 33 CONNECTICUT 6.6 33 NEW JERSEY 6.6 33 WEST VIRGINIA 6.6 36 ILLINOIS 6.7 36 NEW MEXICO 6.7 38 ALASKA 6.8 38 NORTH CAROLINA 6.8 40 ALABAMA 6.9 41 ARIZONA 7.1 41 KENTUCKY 7.1 43 OREGON 7.2 44 CALIFORNIA 7.4 44 MICHIGAN 7.4 44 TENNESSEE 7.4 47 DISTRICT OF COLUMBIA 7.6 47 NEVADA 7.6 49 RHODE ISLAND 7.7 50 MISSISSIPPI 7.9 51 GEORGIA 8.1
p = preliminary.
NOTE: Rates shown are a percentage of the labor force. Data refer to place of residence. Estimates for the current month are subject to revision the following month.
Last Modified Date: September 19, 2014
Well, that’s our feds saying this ….
Yep, Brownback’s tax cuts have hurt us so bad, we’re only #14 out of 51.
Many leftards attempted to compare Kansas to our neighbors. To our immediate west and east, where’s Colorado and Misery (Missouri) ?
To be sure, Kansas isn’t an economic Utopia. We still have way too many taxes and too few opportunities for the resources we have. But, our finances are fine, much better then when Brownback took office, our employment rate is better than 2/3 of the nation, our roads are still somehow able to be maintained, and our schools are still open and the leftards are still teaching our children.
While the final numbers are not in, Kansas is expected to have a decrease in revenue, this year. Leftards are pretending the Kansas elections are a referendum on conservatism, and the Laffer curve. They are pouring every resource they have to our state elections.
People, I’m telling you, the fight is here. Just Google “Kansas Tax Cuts” and see how much the Left is invested in us losing this election.
Lastly, and this gives me no pleasure in doing so, but, I’m true to my word, and I told them I would do exactly this if they continued on their idiotic path they did. And, so, I’m obliged to follow through.
A special thanks to the jackasses who pretend to be conservative, but, failed to think, which proves they cannot be conservative. Those would be the people of Breitbart and supposed TEA party organizations who utterly failed conservatives in Kansas. Among these organizations, I know there are leftards pretending to be conservatives and are intentionally misleading people. Make no mistake, you bitches, I will find you. I will expose you for what you are.