Kansas shows us why the GOP and supply side economics doesn't work...Laffer horribly wrong

Gern Blansten

http://www.vox.com/2014/7/8/5868717/sam-brownback-kansas-tax-cut?utm_medium=social&utm_source=facebook&utm_campaign=ezraklein&utm_content=tuesday

Democrats, and some Republicans, weren't buying it. "It bankrupts the state within two years," said Rochelle Chronister, a former state GOP chair who helped organize moderate Republicans against Brownback's agenda. And the House Democratic leader, Paul Davis, laid down a marker. "There is no feasible way that private-sector growth can accommodate the price tag of this tax cut," he said. "Our $600 million surplus will become a $2.5 billion deficit within just five years."

unsung

I will have to read up on this more, but I doubt it's just a tax cut. In Illinois we have some of the highest taxes in the country but we're still insolvent.

Gern Blansten

Right but you certainly wouldn't cut taxes to raise revenue which is the GOP mantra proven wrong in Kansas.

bootlegger10

I

Gern Blansten said:

Right but you certainly wouldn't cut taxes to raise revenue which is the GOP mantra proven wrong in Kansas.

If taxes were 100% no tax would be collected as no businesses would operate. Reducing the tax rate from 100% to 50% would generate significantly more revenues. Perhaps Kansas just cut too much or the tax rate was already low. The Laffer curve is still viable, but you can't always know where you stand on the curve.

Gern Blansten

bootlegger10 said:

I

Gern Blansten said:

Right but you certainly wouldn't cut taxes to raise revenue which is the GOP mantra proven wrong in Kansas.

If taxes were 100% no tax would be collected as no businesses would operate. Reducing the tax rate from 100% to 50% would generate significantly more revenues. Perhaps Kansas just cut too much or the tax rate was already low. The Laffer curve is still viable, but you can't always know where you stand on the curve.

Kansas' rate was 6.5%. Your argument has no merit unless rates are 100%.

And yes perhaps they cut too much....that's the point. The GOP tried to ram through their failed theory and it failed as predicted.

And by "Laffer horribly wrong" I was referring to the article referenced in my post. He should have known better.

Just because Reaganchrist cut taxes and revenues went up does not mean that cutting taxes raises revenues.

unsung

Cutting back on the red tape regulations that remove strangleholds on small businesses would do more for raising revenue than raising taxes.

Texas cut taxes and they are thriving, whatever Kansas has done is unique to Kansas, each state has problems that are unlike other states.

Halifax2TheMax

unsung said:

Cutting back on the red tape regulations that remove strangleholds on small businesses would do more for raising revenue than raising taxes.

Texas cut taxes and they are thriving, whatever Kansas has done is unique to Kansas, each state has problems that are unlike other states.

Unless you happen to live near a fertilizer plant or storage building.

Peace.

Gern Blansten

unsung said:

Cutting back on the red tape regulations that remove strangleholds on small businesses would do more for raising revenue than raising taxes.

Texas cut taxes and they are thriving, whatever Kansas has done is unique to Kansas, each state has problems that are unlike other states.

Several states have no income tax because they are able to support themselves through other taxes (i.e. sales tax, etc).

Mike Pence talked about cutting Indiana's income tax which is currently about 4.5%. At least our GOP was smart enough to talk him out of it.