The right-wing paradise that was supposed to happen in Kansas when taxes were cut is an utter failure. The response in Kansas is to hide the bad news emulating the examples of the failed communist countries.
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A quick refresher: In 2010, Brownback, a U.S. senator, ran for governor on an economic platform created by the American Legislative Exchange Council, a conservative group that specializes in promoting draft legislation. He promised to slash taxes on business owners and lower personal income tax rates, unleashing an economic renaissance in Kansas.
In May 2012, he signed the bill into law. It initially lowered the top personal tax rate to 4.9 percent (it’s now 4.6 percent) from 6.45 percent, but most importantly, it eliminated income tax on profits for owners of limited liability companies, subchapter S corporations and sole proprietorships.
Give Brownback credit for passing the exact legislation he had promised.
The results, however, haven’t been very encouraging. Indeed, since the tax cuts were passed, almost nothing has gone as promised in Kansas. Revenue plunged and the state resorted to pulling money out of its rainy-day fund to plug the holes. A number of critical services, including for road maintenance and schools, were cut. The business climate has been poor, and the economy has lagged behind neighboring states as well as the rest of the country.
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A summary of the Brownback record shows:
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A quick refresher: In 2010, Brownback, a U.S. senator, ran for governor on an economic platform created by the American Legislative Exchange Council, a conservative group that specializes in promoting draft legislation. He promised to slash taxes on business owners and lower personal income tax rates, unleashing an economic renaissance in Kansas.
In May 2012, he signed the bill into law. It initially lowered the top personal tax rate to 4.9 percent (it’s now 4.6 percent) from 6.45 percent, but most importantly, it eliminated income tax on profits for owners of limited liability companies, subchapter S corporations and sole proprietorships.
Give Brownback credit for passing the exact legislation he had promised.
The results, however, haven’t been very encouraging. Indeed, since the tax cuts were passed, almost nothing has gone as promised in Kansas. Revenue plunged and the state resorted to pulling money out of its rainy-day fund to plug the holes. A number of critical services, including for road maintenance and schools, were cut. The business climate has been poor, and the economy has lagged behind neighboring states as well as the rest of the country.
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A summary of the Brownback record shows:
- Kansas’ gross state product fell behind the six-state region and the nation for the third straight year. (Kansas’ gross state product grew at a faster rate when compared to the region and the nation in three of the five years before Brownback took office in 2011).
- Private industry wages in Kansas grew at a slower pace last year than they did in the region and the U.S. -- as they did during the past five years.
- The number of private business establishments in Kansas trailed both the region and the nation for the last year, again continuing a five-year trend.