Posted on 11/18/2017 2:23:09 AM PST by jonefab
When House Republicans unveiled their plan for tax reform this month, Democrats offered a curious response. Rather than give their own proposal, they held a mock hearing—a show trial, really—on Kansas’ 2012 tax cuts. Democrats see my state as proof that supply-side economics doesn’t work and that the GOP’s national tax reform will lead to budget cuts and enormous deficits.
But the comparison is less a cautionary tale than a tall tale. I was Kansas’ state treasurer from 2011-17, and no one watched the dollars flowing in and out more closely than I did. Consider a few facts:
First, the 2012 tax cuts came during the same year that federal stimulus funds ended. That alone resulted in a 12.5% drop in revenue. In the spring of 2010, then-Gov. Mark Parkinson, a Democrat, had worked with the Legislature to pass a 2011 budget that included $527.6 million in stimulus funds. Democrats knew this money was temporary but behaved as if it were permanent. The effect was to exaggerate the “lost revenue” from the tax cut.
Second, the shortfall was made worse because state lawmakers rejected the “pay-fors” proposed by Republican Gov. Sam Brownback. The governor’s original tax plan would have closed many loopholes. But the Legislature wanted to keep the tax credits and deductions and left them in the final bill. Such carve-outs should be viewed as spending through the tax code, as Martin Feldstein, a top adviser to President Reagan, has argued on these pages.
Third, the Legislature then continued to increase spending by 3% a year.
(Excerpt) Read more at wsj.com ...
And now you know the rest of the story
Actually there’s a paywall so I don’t.
Just read the part that was posted......that’s enough
Bump
Half are mental. The other half knows that tax cuts gets better revenue.
...and Reagan's tax cut did not get implemented until year 3
Spending control or the lack of it by government does indeed change supply side into voodoo economics. Yet tax money belongs to us first as earnings. We might was well keep it our selves.
Ha...I have a relative who is an economic genius, well at least according to him...
His credentials: he's a liberal. What more do you need ? He never even ran a lemonade stand.
He uses Kansas as his only talking point when ranting against supply side economics model...
Like most liberals he is thin skinned and deranged and after multiple times me embarrassing him with facts like these, he finally unfriended me from Faceboob...
Democrats are always willing to torture the data to get the outcome they want.
Their establishment media is only too willing to push the fantasies as fact.
Not entirely correct. Constitutionally Kansas could not run a deficit. So the reduced revenues forced them to control spending by cutting their spending to match income.
Ding, ding ding, Don Pardo, we have a winner. What prize do we have for our guest?
Yes, the Reagan tax cuts were great, but in the end taxpayers were bamboozled. Rates were lowered in exchange for getting rid of deductions and “loopholes”, money flowed into the treasury as the economy boomed, and then politicians kept on spending what they got and more. Of course, the deficits increased, so guess what? The sleazes in DC raised the rates back up again, but the deductions were gone forever. Folks, be prepared to get hosed again.
Unless spending is really cut, not just cuts in the proposed spending increases, nothing will change. American voters really don’t want smaller government or we would have it. Nobody wants his own government benefit cut. They want the other guy’s government benefit cut. Just ask farmers or electric car makers how they fell about ethanol mandates or tax credits for electric vehicles.
Until WE vote in people who will vote that way we should take what we can get. One percent growth will turn us into a turf world country. Bringing back corporate money and increasing growth is our best bet at the moment
He managed to cut taxes and double revenues over 8 years. He proposed eight budgets one of which was enacted.
George Mitchell and Tip O Neill gleefully tore them up and substituted their own budgets, which always found ways to spend the additional revenue and then to create deficits on top of that spending. There was no “Regan Deficit” as liberals claim; there was only “Tip O Neil/George Mitchell” deficits that required the eventual raising of taxes.
I would note that Regan’s budgets did have deficits, mostly to fund defense, but the additional revenue would have made up for them.
There are no “loopholes,” there is only tax law. The late Dan Rostenkowski, head of Ways and Means, was fond of saying that the tax code was used to reward your friends and punish your enemies.
The bamboozling was not done by Reagan, but by the Democrats who controlled congress and did everything they could to sabotage Reagan’s efforts.
Good, government has too much revenue.
I agree completely that the Democrats were responsible for the increase in rates, but they knew they were going to do it all along. Republicans then, as now, were too spineless to argue about it, or perhaps they really are just the other half of the Demopublican party. I loved Reagan, but just about every other politician in DC is a snake.
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