https://twitter.com/LeavittAlone/status/1333072994147688450

  • GnastyGnuts [he/him]
    ·
    4 years ago

    https://www.cbpp.org/research/state-budget-and-tax/kansas-provides-compelling-evidence-of-failure-of-supply-side-tax-cuts

    "In 2012 and 2013, at the urging of Governor Sam Brownback, lawmakers cut the top rate of the state’s income tax by almost 30 percent and the tax rate on certain business profits to zero. Under “supply-side” economic theory, these deep tax cuts should have acted — as Brownback then predicted — like “a shot of adrenaline into the heart of the Kansas economy,” stimulating strong growth in economic output, job creation, and new business formation. But in reality, Kansas underperformed most neighboring states and the nation on all of those measures after the tax cuts. For example:

    • Kansas’ 4.2 percent private-sector job growth from December 2012 (the month before the tax cuts took effect) to May 2017 (the month before they were repealed) was lower than all of its neighbors except Oklahoma and less than half of the 9.4 percent job growth in the United States.

    • Likewise, the number of Kansas residents reporting income on their federal tax returns from a partnership or “S corporation” (two of the main types of businesses that the tax cuts exempted from income tax) grew by 4.1 percent between 2012 and 2015, well below the 5.4 percent growth for the United States and below all of Kansas’ neighbors except Missouri.

    Moreover, Kansas revenues plunged, leading to cuts to education and other vital services and downgrades in the state’s bond rating. On June 6, 2017, the legislature terminated what Brownback had termed a “real live experiment” in supply-side tax policy, repealing the business profits exemption and moving income tax rates back toward where they had started."

    • Coca_Cola_but_Commie [he/him]
      ·
      4 years ago

      I wonder how many conservatives in government fail to see that all the ideas and theory behind conservatism in this country are a lie and that conservatism's primary reason for existing is to funnel as much money to the rich as possible? Like, I kinda get the the middle class people who are tricked by it because they believe their interests are tied up with the economy and big business (and they are, in the short term). But did Sam Brownback honestly believe that supply-side economics would do anything good for his state?