A Tale of Two Tax Cuts (it’s actually the same cuts, just two different realities)

The subject here is Kansas headlong dive into supply-side economics.   For a quick refresher, here’s how these same economic ideas failed the nation, when it was used for the same experiment (see also here).

So…where are we now….

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.

[full story]

Gov. Brownback also claimed these massive tax cuts would create jobs.  That hasn’t worked out like he said, either.

Using the federal agency’s data, The Star compiled percentages of seasonally adjusted, nonfarm total job growth for Kansas, its four bordering states, a few other Midwestern states, Texas (no income tax), New York (extremely high income tax), and the U.S. average from January 2011 through June 30, 2014.

Texas, 10.5 percent

Colorado, 9.2 percent

Oklahoma, 6.5 percent

U.S. average, 6.1 percent

Iowa, 5.0 percent

New York, 4.8 percent

Missouri, 4.1 percent

Nebraska, 3.8 percent

Kansas, 3.5 percent

Arkansas, 1.9 percent

Kansas has had one of the nation’s poorest rates of employment growth during Brownback’s time in office, including since the first tax cuts took effect in 2013.

There also some more nice charts here on Kansas’ decline, and they include this little bit here…..
Keep in mind that these are actual year-over-year declines in revenues, not shortfalls in projected revenue. And they came at a time when the national economy was recovering (albeit slowly) and most other states were enjoying strong pickups in tax collections.
So while nearly everyone else in country is experiencing a recovery of revenue as the economy recovers, Kansas is stuck drawing down its reserves in order to not tax businesses any more.

BTW…can you guess where Koch Industries, the second largest private company in the U.S., is headquartered?     C’mon guess.

And guess what one of the big tax cuts Brownback pushed was?   C’mon guess.

So…knowing who it is that pushed these tax cuts…is it any wonder at all that their media operatives completely ignore all of this data and continue to claim that tax cuts always work?
By Stephen Moore, of Falls Church, Va., is chief economist at the Heritage Foundation. A version of this piece first appeared in Investors Business Daily.

Ok…I was going to quote the article by Stephen Moore, who is the poster-child for magical tax cuts claims…however, in between the time I first read that article and now, it appears they’ve gotten so many complaints that Moore’s numbers were made up they had to post a correction.

Let me repeat…this guy, Stephen Moore, had to have his job numbers corrected because he was lying about them.    Which leads to the general awareness that they only way conservative math even “works” is WHEN YOU ARE LYING.

So now we’ve seen the same “cut taxes to generate growth” b.s. blown away on both the national stage and on the state level.

California did the exact opposite of Kansas. In 2012, when California was in a dire budget crisis, voters passed a critical ballot initiative undoing the state’s requirement of a two-thirds supermajority vote in the legislature to raise taxes. Through the initiative, California voters passed tax increases for everyone, including the rich, marginally increasing the sales tax while creating new income tax brackets of 10.3 percent for those who earned between $250,000 and $300,000; 11.3 percent for taxpayers who made anywhere between $300,000 and $500,000; 12.3 percent for incomes of $500,000 to $1,000,000; and 13.3 percent for all incomes above $1,000,000. The richest Californians would barely notice it, given the immense wealth in California’s major economic hubs like Silicon Valley, Hollywood, and the wine country.

After monitoring the results, the New Jersey Policy Perspective, a non-partisan think tank, found that California’s tax increases are paying off big time. The state’s coffers will gain approximately $6.8 billion in new revenue every year, all of which will be invested in public education. California saw 2.9 percent job growth in 2013, making it the third fastest-growing economy in the US.

[SIDE NOTE:  I called this back in 2012]

Border Sheriffs Perplexed by Rick Perry’s Plan to Spend Millions for Photo Ops

Why would you spend millions of dollars sending troops to the border who can’t actually detain anyone? That’s what some Texas sheriffs of border towns are asking in the wake of Gov. Rick Perry’s plan to send 1,000 National Guards members to the Texas/Mexico border in the next month, according to the Dallas Morning News. For them, it would be more useful to spend the money on hiring more deputies and police, aka people who are allowed to detain migrants.

“I don’t know what good they can do,” Cameron County Sheriff Omar Lucio told the Dallas Morning News. “You just can’t come out here and be a police officer.” Lucio and other sheriffs said they weren’t consulted before Perry’s announcement and, in Lucio’s opinion, the police and Border Patrol agents were handling the small uptick in crime. “At this time, a lot of people do things for political reasons. I don’t know that it helps,” Lucio said.

via Border Sheriffs Perplexed by Rick Perry’s Plan to Send 1,000 Troops to Stare at Mexico – Yahoo News.

Photo Ops folks.  That’s why he’s doing it.  Politics and photo ops.

Some pretty dang funny ones if you ask me.

Border Sheriffs Perplexed by Rick Perry's Plan to Send 1,000 Troops to Stare at Mexico - Yahoo News

Perry Gun

And they’re also pretty dang expensive, but fear not Texans.  Rick Perry has a plan to pay for them…

“It is not clear where the money will come from in the budget,” the memo states, adding that Perry’s office has said the money will come from “non critical” areas, such as health care or transportation.

Nice.  Texans get more toll roads and dead people to pay for Perry’s photo ops.  Seems like a fair trade.

Senate GOP Refuses to Even Debate the Notion that Women Have a Right to Contraception

WASHINGTON (AP) — Senate Republicans on Wednesday blocked a bill aimed at restoring free contraception for women who get their health insurance from companies with religious objections, a legislative setback for Democrats that they hope will be a political winner in November’s elections.

The vote was 56-43 to move ahead on the measure, short of the 60 votes necessary to proceed.

Democrats sponsored the election-year bill to reverse last month’s Supreme Court ruling that closely held businesses with religious objections could deny coverage under President Barack Obama’s health care law.

via Senate GOP blocks bill on contraception coverage – Yahoo News.

Instead, the GOP tried to push a bill that says “when your employer kicks you to the curb for being a slut, you can go buy your own, whore!!! (paraphrased)”

In reality, they said this…

Sen. Kelly Ayotte (R-N.H.), joining McConnell at his press conference, said the bill is intended to make the political point that “women have the same rights today to access contraception as they did before Obamacare was passed, and before the Hobby Lobby decision.”

This is *almost* true.  Before the ACA was passed, women did not have  right to contraception in their health insurance plans.  After it was passed, they did.  After Hobby Lobby, they lost that right to “religious corporations”.

You block a bill that would have restored those rights to women.  Stop lying, GOP.

White House Says Marijuana Policy Is States’ Rights Issue, Republicans Disagree and think the Feds should Decide for Everyone

WASHINGTON — The Obama administration believes marijuana policy is a states’ rights issue, the White House said Monday in opposing Republican-led legislation that would prevent Washington, D.C., from using local funds to decriminalize marijuana possession.

The GOP-sponsored House amendment would prevent D.C. “from using its own local funds to carry out locally-passed marijuana policies, which again undermines the principles of States’ rights and of District home rule,” the White House said in a statement. The White House said the bill “poses legal challenges to the Metropolitan Police Department’s enforcement of all marijuana laws currently in force in the District.”

 

via White House Says Marijuana Policy Is States’ Rights Issue.

Just to be clear…if you want freedom in this country, you should never vote for a Republican.

Texas GOP’s secret anti-Hispanic plot: We Don’t Want Them Voting

“These metrics would be useful to identify the ‘nudge factor’ by which one can analyze which census blocks, when added to a particular district [they] help pull the district’s Total Hispanic pop … to majority status, but leave the Spanish surname RV [registered voters] and TO [turnout] the lowest,” Opiela writes to the mapmaker.

Interiano responded two days later: “I will gladly help with this Eric but you’re going to have to explain to me in layman’s terms.”

Two years and seven months after that email exchange — and one year ago on June 25, 2013 — the U.S. Supreme Court issued a 5-4 ruling in Shelby County v. Holder,which struck down a provision of the Voting Rights Act of 1965 that had allowed the federal government to “pre-clear” redistricting maps proposed by Texas and other states with a history of discriminating against minority voters.

In a follow-up email on Nov. 19, 2010, Opiela explained to Interiano that he called his proposed strategy: “OHRVS” or “Optimal Hispanic Republican Voting Strength.” Opiela defined the acronym-friendly term as, “a measure of how Hispanic, and[,] at the same time[,] Republican we can make a particular census block.”

 

via Texas GOP’s secret anti-Hispanic plot: Smoking gun emails revealed – Salon.com.

We’ll see if this gets much more air time, but with the current GOP Attorney General nominee under felony indictment and the LtGov nominee is a talk show host, you can’t expect anything close to rational behavior out of Texas.

American drug companies don’t want to pay US taxes—but they want global customers to pay US drug prices

RobotPirateNinja:

Playing both sides of the “what am I” game. Telecom corps doing the same thing with utility/common carries/information service definitions.

Originally posted on Quartz:

Pfizer’s bid to purchase AstraZeneca failed, but the company’s attempt to move to London in an effort to avoid US corporate taxes has inspired a new round of commentary on America’s corporate tax system. Perhaps it should also spur a look at America’s commitment to raising drug prices around the world.

The US taxes the global income of its companies, which has led many of the largest to keep profits overseas indefinitely to avoid paying Uncle Sam, and even shift US profits overseas to avoid public levies. So-called “inversions”—reverse mergers where a US company buys a foreign one and assumes their jurisdiction, as Pfizer proposed—have also become more popular. Four US pharmaceutical companies have used the tactic to go overseas in the last year, and four more are considering similar moves.

While some US lawmakers have proposed a deal that would (paywall) block inversions as part of a strategy to lower taxes—a corporate…

View original 468 more words

Lara Logan Goes Back To Work At CBS

After much speculation about whether she’d return to CBS News at all, Lara Logan was officially back at work Wednesday following a more than six-month leave of absence from “60 Minutes” prompted by her flawed report on Benghazi.CBS News spokesman Sonya McNair confirmed to the Associated Press that Logan had resumed work. She offered no details about exactly when Logan had returned to the network or what the correspondent was working on.

via Lara Logan Goes Back To Work At CBS.

It was there or let her out of the contract and go be a star on Fox, I’d wager.  They’ll snap her up in a heartbeat.  BTW, anyone who believes anything she says from here on out is a sucker.

Follow

Get every new post delivered to your Inbox.

Join 109 other followers