In all the commotion in the news about the President's latest tweets, Senate hearings, mass shootings, and a horrendous fire in London, you may not have noticed, ...
... but something significant was going on in Kansas state government the other day. After years of trying to make the governor's "tax rate cuts to stimulate new growth" plan work, the legislature finally put an end to his experiment. The reason? The state was failing to provide basic services, was borrowing too much money, and was failing to maintain its infrastructure. In short, significantly lower taxes was not ramping up the economy nearly enough to compensate for the lower tax rate. Revenues continued to drop the entire duration of the four year "experiment."
And this was voted by a legislature with Republican majorities in both houses! See the full story here.
This might not seem like a big deal at the moment. After all, Kansas is not a very populous state (under 3 million people), and therefore is not a major player in the US economy. But the principle is clear and should serve as an example for other states, or even the federal government, where we often hear similar proposals.
... but something significant was going on in Kansas state government the other day. After years of trying to make the governor's "tax rate cuts to stimulate new growth" plan work, the legislature finally put an end to his experiment. The reason? The state was failing to provide basic services, was borrowing too much money, and was failing to maintain its infrastructure. In short, significantly lower taxes was not ramping up the economy nearly enough to compensate for the lower tax rate. Revenues continued to drop the entire duration of the four year "experiment."
And this was voted by a legislature with Republican majorities in both houses! See the full story here.
This might not seem like a big deal at the moment. After all, Kansas is not a very populous state (under 3 million people), and therefore is not a major player in the US economy. But the principle is clear and should serve as an example for other states, or even the federal government, where we often hear similar proposals.
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