May 22nd I wrote "It's the law, Kansas GOP gives state to the rich", you can read it a couple of blogs below this one. I outlined how Gov. Brownback and the GOP gave the rich a tax cut that will drive a $2.5 billion shorfall in 5 years. But according to them the state will grow and have more jobs and tax income than anytime in history.
Today, all over the state, the editors of almost every good sized town in the state is railing against the tax cut, where the hell were they a week ago, a month ago? All predict a near collapse of state services and little if any growth from the supply side model of the Reagan era, partially written by consultants who worked for Reagan, consultants that we paid a $100k fee.
It turns out, and I honestly didn't know this, the state has a balanced budget amendment, so the GOP is correct when they say we will never reach the 2.5billion shortfall as projected. Instead we will cut off virtually all school and university funding, hiway funding, care for the infirm, care for elderly, close state parks, public defender offices, health inspection offices, etc.
The rich, and businesses will not pay as much tax to the state, in many cases none. But another thing I didn't know, they will not pay it to the state, but they will pay more to the federal government and to other states. Credits for state tax lowers your federal taxes, if you own a shop here and live in New York you didn't pay New York either. That's all trashed, now you will send more to the IRS, and pay even a higher rate in New York. The savings for the rich is small if any at all.
So who is being helped, why did they do it? The papers paint a picture of a deliberate trap for future governors, with the balance budget law forcing the state to chop it's own arms off and let the babies we cared about in the womb die in the crib. Who ever the next president is will be helped a little as Kansans will lose their deductions from the state tax they paid, thus send more to the IRS helping to pay down the feds bills. Businesses may not save any tax dollars in the end, but the hated regulators and monitors will be fired, they can go back to dumping waste oil and chemicals at the back door of the shop and cheating people out of overtime. And the poor and needy of Kansas, they get screwed because they pay higher taxes now and their services WILL BE CUT, SOME WILL BE CUT OFF.
Have to wait and see, but my guess is that the economy of the state will auger in as the cuts take hold, leading over the next few years to economic collapse and out-migration as Kansas becomes Greece on steroids. Eventually the imbeciles who inaugurated this will be voted out, assuming that elections are still being held at that point. I frankly see no way this can end well...
ReplyDeleteFringe,
ReplyDeleteSounds like Kansas has achieved the ultimate in stupidity, a tax break that in reality benefits nobody (except for maybe the feds.)