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Last edited Tue Oct 17, 2017, 08:45 AM - Edit history (1)
Oh hell, this is just great. If you know anything about the disaster they created in Kansas... grab your wallet in one had and start fighting back with the other!
The economist who helped wreck Kansas economy is Trumps new budget cheerleader
What could possibly go wrong? Art Laffer has firsthand experience.
AARON RUPAR
OCT 16, 2017, 12:33 PM
https://thinkprogress.org/trump-art-laffer-tax-cuts-kansas-7aa427240148/?utm_campaign=trueAnthem:+Trending+Content&utm_content=59e5723604d30121bbb9bc43&utm_medium=trueAnthem&utm_source=twitter
?resize=1280%2C720px&ssl=1
Five years ago, Laffer a longtime champion of supply-side trickle down economics made $75,000 helping Kansas Gov. Sam Brownback (R) shepherd a package of tax cuts through the Kansas legislature. The states cuts were similar to those now proposed by Trump on the national level. In August 2012, Laffer promised a crowd at a small business forum in Kansas that the cuts would produce enormous prosperity, adding that theyll make a big difference in a decade. They did make a big difference, but not in the ways Brownback and Laffer intended.
As ThinkProgress reported on the occasion of a bipartisan group of Kansas lawmakers rolling back Brownbacks economic policies in June, the drastic cuts which included eliminating state income taxes for pass-through businesses didnt produce the growth Laffer foresaw. Instead, employment and the state economy both grew slower than the national rates, and the drastic decline in tax revenue coming into the states coffers blew a gigantic hole in its budget.
Kansas is in a fiscal crisis. Lawmakers have to close an over $300 million deficit by this month. Infrastructure spending has been put on hold, the states Supreme Court has ruled that public schools arent being equitably funded, and the failure to expand Medicaid has hurt vulnerable Kansans and cost the state billions.
All of these factors served as a wake-up call to state lawmakers, who have finally turned on Gov. Sam Brownback (R) and rejected his economic policies. On Tuesday night, a coalition of Kansas lawmakers conservatives, moderate Republicans, and Democrats rolled back tax cuts that havent delivered on the promise of stimulating the state economy. Kansas will raise taxes $1.2 billion over the next couple years to cover its deficit.
-snip-
While slashing taxes didnt stimulate the economic growth Laffer promised in Kansas, the Trump administration wants you to believe that the growth fairy will come through if theyre enacted nationally. Late last month, Commerce Secretary Wilbur Ross told CNBC that Trumps tax cuts will increase the [gross domestic product annual] growth [average] by 1 percentage point, from 2 percent to 3 percent growth that would help pay for the cuts. Trump himself characterized his plan as rocket fuel that will help propel economic growth.
But Kansas experience illustrates that despite what supply-siders like Laffer would have you believe, slashing taxes doesnt guarantee growth. They are, however, almost certain to reduce federal revenues one study cited by the Times estimates Trumps plan could reduce federal revenues by at least $41 billion a year, with $39 billion of that reduction coming from existing pass-through owners paying lower taxes.
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superpatriotman
(6,249 posts)Illegitimate and always wrong.
Laffer has been disproven and half of the public still believes in it because the right has a fantastic message machine.
Yo_Mama_Been_Loggin
(108,025 posts)Much less is why is he still taken seriously?
dalton99a
(81,515 posts)jmowreader
(50,559 posts)Him and Jude Wanniski. Fortunately for America, Wanniski is dead.
KelleyKramer
(8,969 posts)Having a hard time remembering
jmowreader
(50,559 posts)David Stockman was Reagan's budget director.