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The Republican-controlled house and senates of Kansas voted to increase taxes and to override the governor's veto of a bill to increase taxes.
The current governor pushed through tax cuts, intended to grow Kansas' economy, but during the tax cuts, Kansas' growth was lower than the country's overall growth.
The increase follows years in which the state was unable to balance its budget, and the funding for education was found to be unconstitutionally low.
In my view, state budgets are likely to take a hit from Trump's stealth tax increase: by reducing funding for programs and forcing the states to step in, the states will have to find extra money to fill the gaps.
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Kansas' Experiment with Reducing Taxes Ends in Failure, Republicans Override the Governor's Veto
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You know, the difference between this company and the Titanic is that the
Titanic had paying customers.
(Score: 3, Interesting) by Anonymous Coward on Thursday June 08 2017, @05:58PM (1 child)
It has been reported repeatedly that the Laffer curve actually does have an effect when you start at a marginal tax rate of 90 percent. [google.com]
In the years since JFK, however, the feedback loop on the economy from tax cuts has been weak.
Those have served to empower the already-rich (giving us an ever less democratic government) while harming the actual economy (ordinary folks buying ordinary stuff).
If a tax cut doesn't have strong strings attached (must actually create jobs), the claimed advantage doesn't appear.
-- OriginalOwner_ [soylentnews.org]
(Score: 1) by khallow on Friday June 09 2017, @03:27AM
And we should believe those reports why? I'll note there seems to be better evidence for the current highest tax bracket of 40% being closer to the actual peak, though still on the high side. Further, it bears repeating that Laffer curve is not a magic invariant. It depends on many factors, such as what the taxes are paying for. For example, the usual approach of taxing people and dumping it into worthless or even negative value things generates a Laffer curve with a much lower peak than where that tax money is used to generate paradise. The US is notorious for being very wasteful and even destructive (such as the recent war in Iraq) with tax revenue. That real world depression of the Laffer curve peak isn't going to be revealed in fantastical studies which conclude the outcome that is desired.