How Tea Party tax cuts are turning Kansas into a smoking ruin

"States considering deep tax cuts in hopes of sparking a surge of economic growth should look carefully at Kansas," ...  Yes, look carefully -- and run the other way!

By Michael Hiltzik
LOS ANGELES TIMES

Sam Brownback, the Republican governor of Kansas, doesn't just believe in whistling past the graveyard--he's willing to stroll past it in full-throated song.

The graveyard is where the economy of Kansas has been buried since 2012, when Brownback and his Republican state legislature enacted a slew of deep tax cuts in a tea party-esque quest for economic "freedom."

Our new pro-growth tax policy will be like a shot of adrenaline into the heart of the Kansas economy.

"Our new pro-growth tax policy will be like a shot of adrenaline into the heart of the Kansas economy," he promised then. Brownback's tax consultant, the supply-side guru Art Laffer, promised Kansans that the cuts would pay for themselves in supercharged economic growth.

Instead, job growth in Kansas trails the nation. The state's rainy-day fund is dwindling to zero. Month after month, revenue comes in even lower than fiscal officials' most dire expectations.

In the rest of the country, school budgets are finally beginning to recover from the toll of the last recession; in Kansas, they're still falling. Healthcare, assistance for the poor, courts, and other state services are being eviscerated.

Who's benefiting? The rich, including those proud offspring of Wichita, Kan.: the Koch brothers.

Despite all this, Brownback resorted to an op-ed in the Wall Street Journal a few weeks ago to declare that "the early results are impressive." Among other statistics he cited, "In the past year, a record number of small businesses — more than 15,000 — were formed."

Yes, but as shown by the Center on Budget and Policy Priorities, a Washington economic think tank, 16,000 disappeared. And many of those businesses that Brownback crowed about were surely created to take advantage of one of the tax-cut quirks Brownback enacted. This is the elimination of all taxes on partnerships, sole proprietorships, and LLCs that pass through their tax liabilities to their owners. That allows everyone from freelancers and petty contractors to huge partnerships to avoid any state income tax at all, as long as they're organized as a certain type of "small business."

Brownback's policy, and his claims about its outcome, define the term "ideological" -- the imposition of preconceived notions on a contradictory reality.

The record of Kansas since 2012 shows the folly of such draconian cuts in revenue. It's one thing to enact targeted cuts in tax rates during an economic upswing, when such a policy can add fuel to job generation. It's quite another to do so blindly during a slump, when cuts in state services undermine efforts at recovery.

Brownback's tax policy came right out of the conservative playbook. His 2012 package cut the top two personal income tax rates from 6.45% (on income over $60,000) and 6.25% (on income between $30,000 and $60,000) to 4.9%. The rate on income under $30,000 was pared to 3% from 3.5%. Pass-through business income was made fully tax-exempt. The law increased the standard deduction, but also eliminated several tax credits that assisted the poor....

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Koch Brothers, Karl Rove and Others Pledge Spending $1 Billion To Defeat President Obama

Republican super PACs and other outside groups shaped by a loose network of prominent conservatives – including Karl Rove, the Koch brothers and Tom Donohue of the U.S. Chamber of Commerce – plan to spend roughly $1 billion on November’s elections for the White House and control of Congress, according to officials familiar with the groups’ internal operations. -  Politico

One New Jersey: GOVERNORS ONE PERCENT UNITE IN WISCONSIN

For Immediate Release:
Tuesday, May 1st, 2012
 

Christie Rushes To Help Embattled Walker in Shared War Against Middle-Class Families

 
(NEW JERSEY) – Today, America’s two most anti-middle-class governors are joining forces, as One Percent Governor Chris Christie heads to Wisconsin to headline two fundraisers for fellow One Percent Governor Scott Walker. By rushing to Walker's aid during this historic recall, it is clear which side Christie stands on in the struggle between middle-class families and corporate interests.


Walker and Christie are cut from the same Koch Brothers cloth. They both do the bidding of deep-pocketed backers at the expense of the middle-class and share the same political D.N.A when it comes to harming the working families who make up the backbone of their states. Just like Walker, Christie demonizes public unions and puts collective bargaining in the crosshairs as the centerpiece of so-called “reform”.

While raking in the right-wing money for Walker, Christie will undoubtedly tout his self-serving and factually-challenged “Jersey Comeback” - while conveniently neglecting to mention that New Jersey consistently lags the rest of the nation when it comes to unemployment. Considering how he shares the same warped worldview as Walker and the donors who support them both, Christie should have little trouble finding red meat to offer fawning audiences in Milwaukee and Green Bay. For once, Christie can rely on the truth – that he and Walker are kindred spirits in promoting the interests of the powerful and politically-connected ahead of the well-being of seniors, children and middle-class families. Tonight, Christie can easily clasp Walker’s hands as, together, they wave the banner of corporate interests while demonizing cops, firefighters, teachers and other public workers.

In New Jersey, Christie has championed rolling back environmental protections, union contracts and health benefits. He’s claimed fiscal discipline in cutting services, while giving handouts, bailouts and tax breaks to casino moguls, mall developers and the wealthiest One Percent. Christie refuses to even contemplate a millionaire's tax, while his much-ballyhooed income tax plan won’t help middle-class families in any meaningful manner. If Christie had his way, a family earning $50,000 would save a piddling $80.50 and a family earning $100,000 would get back just $275. Of course, millionaires will benefit most - by getting back a whopping $7,265.

In taking his swagger to Wisconsin, Christie is clearly embracing both Walker’s regressive policies and his politics of divisiveness. This is no surprise to anyone who has followed Christie’s record in New Jersey – where he has showered the super-wealthy with benefits and freebies, while hammering middle-class families. With a Walker-like reputation of his own, it will only be a matter of time before the people of the Garden State come to the same obvious conclusion against Christie as Wisconsin voters have against the out-of touch governor in the Badger State.

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One New Jersey is shining a light on politicians who act against the best interests of New Jersey’s residents and who seek to divide our state for their own political gain. It is giving voice to the important issues that affect our daily lives. One New Jersey will closely monitor policy positions and actions of elected officials and expose their records on the issues that matter. You can follow One New Jersey on Twitter or search for “One New Jersey” on Facebook.