Friday, September 08, 2017

Trickle down economics proven wrong again

In June 2017, the Republican-controlled Kansas legislature repealed Governor Brownback's signature tax cuts. In effect since 2013, the cuts reduced personal income tax rates and imposed no tax at all on many kinds of business income. This was touted as the best way to boost growth, bring back jobs, and make Kansas richer.

There were promises that the tax cuts would yield 22,000 more jobs over normal growth, 35,000 more people moving into the state over five years, disposable income to expand by $2 billion over five years.

All told, not only did the tax cuts fail to deliver faster job growth, faster population growth, or faster disposable income growth, but the growth rates of all three metrics declined noticeably after the tax cuts went into effect. Furthermore, the surrounding states, which did not impose massive tax cuts aimed at the rich, outpaced Kansas on all three measures over the same time period.

67 Republicans in the Kansas House and Senate rebuked a governor of their own party and rolled back his main legislative accomplishment.

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