The election of Kansas Governor Brownback, in 2012, brought with it the dream of fulfilling the promise of Tea Party heaven. The dream has become a nightmare. The dream is that lower taxes will bring with it economic freedom. The reality for Kansans is that deep tax cuts have brought with it an economic disaster.
It is fine to experiment in a laboratory with mice but when you affect the lives and well-being of human beings it is a different matter.
Dorothy wouldn’t recognize Kansas anymore. She might prefer going back to Oz. The tornado that has hit Kansas has been the Tea Party, Arthur Laffer, trickle down economic policies of Governor Brownback. He came into office with a budgetary shortfall of roughly 61 million dollars and now after a policy of deep tax cuts, revenue is down substantially, job growth has lagged behind other states and the debt has mushroomed. The last report indicated that the debt had increased to 338 million. In a state as small as Kansas, that is a lot of money. Their rainy day fund is down to almost zero. And the S&P and Moody’s credit rating agencies have downgraded Kansas’s credit rating. Each economic report of debt has exceeded expectations.
The true believer, former senator Brownback has done us all a tremendous favor in reminding us once again, of the failure of the idea that severe tax cuts will spur economic growth. Kansans have seen the taxes go up for the poor and the middle class. Business has seen their taxes go down substantially and the rich have benefited by lower taxes as well. Brownback has claimed that 15,000 small businesses have started up while failing to mention that 16,000 have closed their doors. More partnerships have begun with the advantage of little or no taxation for the profits they may acquire.
The policies of Brownback have put the financial future of Kansas in severe jeopardy. His re-election prospects in the reddest of Republican states is in doubt. Up to 100 Republican leaders have endorsed his democratic opponent.
It is instructional to see what happens to we the people when a Tea Party person gets power and control. Hold on to your wallets!
The idea of putting money in people’s pockets by lowering taxes belies the results of what happens when austerity hits. Basic services that we all take for granted are hard to fulfill. Whether we are talking about fixing roads or education, too little revenue causes depressions. The downward pressure created by austerity and too little revenue leaves a horrible impact on we the people. Jobs are lost, due to the fact that without enough revenue the budget does not contain enough money to pay for basic state services. With higher unemployment, fewer taxes are paid and more jobs are lost. It is a vicious cycle, which feeds on itself.
It is interesting to remind ourselves of the fact that Governor Brown in California raised taxes, thereby raising revenue. California’s job growth exceeds the national average and far exceeds that of Kansas. President Clinton raised taxes and we had fantastic job growth. President Eisenhower raised taxes to the highest level we have ever seen but we had a terrific economy. The top tax rate increased under Eisenhower to a higher level, than what had been called the tax the rich tax increases under Franklin Roosevelt. The truth is that the more revenue there is the more jobs can be created and you thereby see income inequality be reduced.
Lower taxes for the rich do not trickle down, the money winds up going into the pockets of the rich.
” I think Capitalism, wisely managed, can probably be more efficient for attaining economic ends than any alternative system yet in sight. But that in itself is in many ways extremely objectionable. Our problem is to work out a social organization which shall be as efficient as possible without offending our notions of a satisfactory way of life.” John Maynard Keynes.
Extremism in any form is not acceptable. Cutting taxes too much creates economic hardships and deprives the citizens of basic services. Just as having taxes too high or wasting money is equally wrong, cutting too deeply does not work. A proper balance is required between the too extremes of taxing too little and taxing too much.
If you still believe in the dream of little or no taxes go to Kansas but be sure and bring some money with you for the rainy days that Kansans are now having. Like the after effects of what happens when the locusts hit, too much austerity leaves nothing left but empty dreams and fallow land.