Tuesday, June 13, 2017

We Are Not in Kansas Anymore. On Sam Brownback's Economic Experiment.

Sam Brownback, a Christianist fundamentalist and the governor of Kansas, has completed his tax-cut experiment, though not voluntarily:

The topic on the table: the governor’s 2012 tax plan, the most sweeping tax cut in state history. The governor called the cuts a “real live experiment” of the principle that slashing taxes and cutting government spending would spur economic growth that would power the state.
But over the last five fiscal years, that plan has failed to create enough jobs and businesses, leaving Kansas’ overall revenue — the money it spends on the mass of state services from fixing roads to schools to social services — down by some $3.6 billion.
The Republican-led Legislature, weary of severe budget shortfalls, handed Brownback a new tax plan aimed at reversing the state’s sinking fortunes by raising $1.2 billion more over two years. Income tax rates would go up, and 330,000 owners of “pass-through” businesses such as law firms and family farms would start paying taxes again.
The governor vetoed the plan. But on Tuesday, in a stunning rebuke, the Legislature overrode the veto, wiping away the centerpiece of Brownback’s conservative agenda.

These natural experiments using flawed macroeconomic models are painful for those who must be the subjects in them, but they are useful lessons for the rest of us.

This clip is added just because.  And so is the title of the post. 

Read more here: http://www.kansascity.com/news/politics-government/article155431604.html#storylink=cpy