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Kansas proves that cutting taxes doesn't create jobs but does devestate economy


               
2014 Jul 22, 12:51pm   4,659 views  32 comments

by Dan8267   follow (4)  

http://www.cbpp.org/cms/index.cfm?fa=view&id=4110

I'm sure there's a republican spin on this and it's all Obama's fault.

#politics

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1   HEY YOU   2014 Jul 22, 2:20pm  

LIES! ALL LIES!

This never happens in a Rep/Con/Tea State. lol

2   bob2356   2014 Jul 22, 2:24pm  

You're telling me Kansas is a real place? I thought movie writers and comedians made it up.

3   JH   2014 Jul 23, 3:41pm  

Good article thanks. Unfortunately nobody who favors tax cuts to wealthy has the attention to span to read it.

4   Ceffer   2014 Jul 23, 4:08pm  

Like, the tax cut has been in effect for ONE YEAR and they expect rampant evidence that is effective or repeal it?

Sounds like some tax hungry bureaucrats demand instant success to quell their rage.

5   JH   2014 Jul 23, 4:24pm  

The comparisons are to other states who have made other policy decisions on the same time scale. But Kansas is going to come roaring up from the back of the pack in, what, 5 years from now? I don't think the politicians have the luxury of time...you can bet they expect results yesterday.

6   Paralithodes   2014 Jul 23, 9:29pm  

The first sentence of the article "proves" that Dan's conclusion is overly broad and unscientific:

"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."

The key words, "...were among the largest ever enacted by any state..." provides no conclusion at all about what cutting taxes in general does to the economy or jobs. ... Except to one who is grasping for any outlier to prove their overall position.

Dan8267 says

I'm sure there's a republican spin...

No doubt, since there is always a political spin on everything.... For instance, using an outlier about tax cuts as evidence about cutting taxes in general is certainly "political spin" from one side, not to different than the accusation (occasionally heard here, though the accusation itself is often also leftist spin) of someone using a single cold day to invalidate global warming. I suggest applying some logic and reason.

7   tatupu70   2014 Jul 23, 9:33pm  

Paralithodes says

The key words, "...were among the largest ever enacted by any state..." provides no conclusion at all about what cutting taxes in general does to the economy or jobs. ... Except to one who is grasping for any outlier to prove their overall position.

That's why you actually have to continue reading the remainder of the article.

8   Paralithodes   2014 Jul 23, 9:39pm  

tatupu70 says

That's why you actually have to continue reading the remainder of the article.

That is good advice, which I realize from having read the article that you should definitely take for yourself, especially before lecturing others.

9   carrieon   2014 Jul 23, 10:24pm  

Why is it that people who don't pay taxes seem to never have compassion for the people that do pay taxes?

10   indigenous   2014 Jul 23, 11:15pm  

carrieon says

Why is it that people who don't pay taxes seem to never have compassion for the people that do pay taxes?

Not sure that is a tough one...

11   indigenous   2014 Jul 23, 11:31pm  

It boils down to the 1.5 multiplier does work...

There is no data in the article related to other states.

"And the academic literature overwhelmingly finds that states with lower personal income taxes perform no better economically than their peers.[3]"

The article at footnote [3] is not overwhelming it is a mixed review on the subject.

It does not mention any data specific to any states. This is the academic equivalent to derivatives, i.e. they are highly leveraged and highly removed from the actual facts.

12   HydroCabron   2014 Jul 23, 11:38pm  

Ceffer says

Like, the tax cut has been in effect for ONE YEAR and they expect rampant evidence that is effective or repeal it?

Exactly right.

Everyone knew that Bergdahl was a traitor as soon as Obama released him. Obama's presidency was a failure by week three. Obamacare destroyed medicine in America before it went into effect.

By contrast, dramatic tax cuts have only been tried repeatedly for 33 years. Though they have consistently failed to increase revenue and trickle down, it's just too early to tell whether or not they do so.

Clearly the answer is to keep doing it.

(However, this reasoning does not apply to raising the minimum wage, which is too dangerous to try even once!)

13   spydah_hh   2014 Jul 23, 11:43pm  

So basically the public sector was hurt by this because of fallen tax revenues by the state. Well duh! Along with the tax cuts the states should of reduced their spending or cutback on their programs.

Tax cuts will only work if the government also makes spending cuts. Then there will need to be time for some adjustments, meaning yeah in the short run the economy will slow down but in the long run it'll adjust and turn out to be better than before.

But at the same time who cares about state INCOME taxes, I mean they're a small portion of paid taxes when you consider the federal income tax and fees that you pay to the federal government and state government.

Also what's the deal with the state raising taxes on the low income families as well?

Also what other states have recovered from the recent recession?

Finally, the cuts were not severe enough to be the catalyst of the recession I am willing to bet Kansas are receiving fallen revenue because the state's economic growth was and had already slowed down and whether they enacted tax cuts or not it would still be seeing fallen revenues and an economic slowdown anyway.

14   John Bailo   2014 Jul 23, 11:43pm  

Kansas has one of the highest property taxes in the US.

http://www.nytimes.com/2007/04/10/business/11leonhardt-avgproptaxrates.html?_r=0

Rich libs hate property taxes.

They only want income taxes.

Keeps the up and comers down.

Kansas by the way seems to have a very low unemployment rate, 4.8%
https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=kansas%20unemployment%20rate

15   Strategist   2014 Jul 24, 12:25am  

bob2356 says

You're telling me Kansas is a real place? I thought movie writers and comedians made it up.

I thought "Kansas" was a person.

16   JH   2014 Jul 24, 12:25am  

John Bailo says

Kansas has one of the highest property taxes in the US.

Texas, which touts no income tax, has the highest. It's one of 3 dirty little secrets Mr. Perry doesn't like to talk about.

17   mell   2014 Jul 24, 12:30am  

JH says

John Bailo says

Kansas has one of the highest property taxes in the US.

Texas, which touts no income tax, has the highest. It's one of 3 dirty little secrets Mr. Perry doesn't like to talk about.

I'd favor a high property tax over a high income tax anytime. I think they are doing it better.

18   Strategist   2014 Jul 24, 12:32am  

JH says

Good article thanks. Unfortunately nobody who favors tax cuts to wealthy has the attention to span to read it.

That's a pretty accurate statement. I favor tax cuts and did not read the whole thing. I think people dismiss something they know they disagree with right off the bat.

19   Strategist   2014 Jul 24, 12:45am  

Dan8267 says

I'm sure there's a republican spin on this and it's all Obama's fault.

Worked forReagan.

20   Strategist   2014 Jul 24, 12:48am  

JH says

John Bailo says

Kansas has one of the highest property taxes in the US.

Texas, which touts no income tax, has the highest. It's one of 3 dirty little secrets Mr. Perry doesn't like to talk about.

You have to raise money from somewhere. Texas has one of the healthiest economies in the nation. States with the highest income tax rates like NY and California have dismal economies.

21   Dan8267   2014 Jul 24, 1:13am  

Paralithodes says

For instance, using an outlier about tax cuts as evidence about cutting taxes in general

Please show your math that Kansas is an outlier.

22   Dan8267   2014 Jul 24, 1:16am  

Paralithodes says

The key words, "...were among the largest ever enacted by any state..." provides no conclusion at all about what cutting taxes in general does to the economy or jobs. ... Except to one who is grasping for any outlier to prove their overall position.

1. A maximum value is not necessarily an outlier.
2. The tax cuts were still less than what republicans wanted.
3. The point of the article IS NOT that tax cuts are never good. The point is that republicans are wrong when they say tax cuts ARE ALWAYS the answer.
4. You are providing no evidence to say that the typical state or municipal taxes are too high.

23   JH   2014 Jul 24, 2:20am  

Strategist says

Texas has one of the healthiest economies in the nation.

oil

24   indigenous   2014 Jul 24, 2:47am  

JH says

Texas, which touts no income tax, has the highest. It's one of 3 dirty little secrets Mr. Perry doesn't like to talk about.

OTH property values are low compared to Calif.

BTW Texas does not get mentioned in any of these studies, seems odd?

25   JH   2014 Jul 24, 3:08am  

indigenous says

OTH property values are low compared to Calif.

True that, but Texans still complain with righteous indignation about high property taxes. It's funny.

indigenous says

BTW Texas does not get mentioned in any of these studies, seems odd?

I wondered this also, but I think it's because Texas doesn't cut taxes. Low taxes vs. cutting taxes = two different stories. Also, oil vs. farms = two different economies. Food prices are up but not as much as oil prices.

26   indigenous   2014 Jul 24, 3:17am  

JH says

True that, but Texans still complain with righteous indignation about high property taxes. It's funny.

Apparently this subject is more nuanced than it would appear? Perhaps this is more than Dan's binary thinking can tolerate.

27   JH   2014 Jul 24, 3:29am  

indigenous says

Apparently this subject is more nuanced than it would appear? Perhaps this is more than Dan's binary thinking can tolerate

Hahaa. Yeah it apparently is more nuanced than black and white. I don't buy the entire story re: Kansas, but the data and discussion (although short-sighted) is interesting and a good initial study of one example of tax cuts at the state level.

28   indigenous   2014 Jul 24, 3:32am  

Rather than going all derivative, why not just look for a correlation between taxes and economic growth?

29   Dan8267   2014 Jul 26, 1:49am  

indigenous says

Apparently this subject is more nuanced than it would appear? Perhaps this is more than Dan's binary thinking can tolerate.

Acknowledging empirical evidence is hardly binary thinking.

30   indigenous   2014 Jul 26, 3:09am  

Dan8267 says

Acknowledging empirical evidence is hardly binary thinking.

How about a priori deductive reasoning?

31   Ceffer   2014 Jul 26, 3:17am  

Political pigs squealing at the empty trough with the usual chaff clouds of deflection and righteous indignation.

Those who are the corruptist squeal the loudest.

32   lostand confused   2014 Jul 26, 5:25am  

mell says

JH says

John Bailo says

Kansas has one of the highest property taxes in the US.

Texas, which touts no income tax, has the highest. It's one of 3 dirty little secrets Mr. Perry doesn't like to talk about.

I'd favor a high property tax over a high income tax anytime. I think they are doing it better.

I don't know. You pay income tax only when you have income. In the case of high property taxes, you pay it regardless of your financial circumstances. if you have no income that year-you still owe astronomical property taxes.

Though FL has no taxes and from what I hear reasonable property taxes???

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