Posted on 01/31/2015 7:03:40 PM PST by SeekAndFind
John Kasich has been making all sorts of news lately, but probably not the type he wants to be showing up in conservative chat rooms. Kasich has a pretty solid conservative portfolio from years past, and he’s still pushing for lower tax rates at home (in most cases) but even some of his more ardent supporters were shocked when he went on tour promoting Medicaid expansion for Obamacare. He also didn’t do himself any favors when he began dancing on the head of a pin for Common Core. (Wait.. this guy wants to run for President as a Republican?)
But getting back to the Ohio tax rate situation, he’s running into some deficit issues following the cuts in income taxes. So how is he going to resolve that problem? Find more places to cut spending until the cuts stimulate the required economic growth? Nope. He’s going to reach for the brass ring with our old friend… sin taxes.
“You’re not going to get this done by just slashing government spending,” Kasich said.
Kasich also said the fact that Ohio’s cigarette tax isn’t higher is “nonsense.” Earlier this year, Kasich proposed raising cigarette taxes as much as 60 cents per pack as part of a plan to reduce the overall tax burden. Lawmakers stripped the tax out of the off-year budget bill. Kasich said Thursday the only reason cigarette taxes aren’t higher is because of lobbyists.
“Everybody’s going to have to be part of tax reform,” Kasich said. “We have to have a system that encourages economic grown, that allows us to collect the revenue we want.”
The Governor apparently doesn’t follow the news much these days (nor Hot Air, for that matter) because he’s looking to jack up prices in a way which primarily hits the poor and working class voters far more than the wealthy. And as we have shown here repeatedly for years now, higher sin taxes rarely if ever deliver the hoped for increase in revenue, and in some cases actually result in lower revenue as piracy rises.
But apparently Kasich isn’t alone. Perhaps he’s been talking to Sam Brownback, another person with a long standing conservative reputation who has recently seen the big government lights.
Brownback, who was in a tough re-election race in part because of a budget deficit fueled by the tax cuts, recently called for raising cigarette and liquor taxes and slowing planned reductions in the income tax rate to help reduce the shortfall.
Brownback is looking to increase both cigarette and booze taxes to shore up the budget. In this effort, Sam is bringing about some bipartisan cooperation, since both Democrats and Republicans in Kansas are turning a jaundiced eye to the proposal. Brownback was already getting himself into trouble with conservatives when he supported Sarbanes-Oxley, wind farm subsidies and ethanol. Adding in some sin tax love may be the icing on an unpleasant tasting cake.
But hey… with a platform like that, maybe he could be Kasich’s running mate.
Hey, look! An oxymoron!
Democrats are saying tax cuts have caused the budget deficits in Kansas. What’s the real story?
tax cuts without concomitant budget cuts will lead to short-term deficits until revenues catch up
It’s just a stupid steer.
Tax cuts without the concomitant spending reductions caused the current deficit. The Democrats refused to pass the cuts. Give it a year or maybe two and the deficits will be wiped out anyway and surplus will appear and grow or occasion further tax cuts so long as the Governor and the conservatives in the legislature stay the course.
Conservatism <> Big Government
Kobach got the most votes of anyone statewide and he is more conservative than anyone in Congress.
Kobach got more votes than Pat Roberts who got more votes than Brownback.
Were is the small government liberal?
Where..........
Just a guess: The required offsetting spending reductions to make the Laffer Curve work did not occur because of unfunded Federal mandates?
No such thing. Now, Big Government REPUBLICANS - lots and lots of those around.
I have a hard time believing that Brownback’s tax cuts will generate the planned revenue since most of the population live within an easy drive of a state with much lower tobacco and liquor taxes.
The expectation was that cutting income taxes, eliminating them altogether for many small businesses, would create jobs and result in higher revenue. It didn't work. Job creation has been lower overall than in neighboring states, revenues have fallen, and areas where he can cut are limited. He privatized Medicaid, so additional savings there are hard to come by. He's cut education, not politically popular. Now he's down to cutting road maintenance and reducing payments to the state pension fund, though in all fairness Brownback has provided more funding to the underfunded pension system than any of his Democrat predecessors.
They didn't occur, though I don't know how much federal mandates had to do with it.
I figured it was either legislators increasing spending or the impact of disastrous federal policies such as Obamacare and other business-killing regulations and mandates.
I’m sure the liberals in KS are gleeful that they can fool people into believing tax cuts are harmful.
If states really wanted to boost their economy they would eliminate business taxes and privatize education at all levels. I know.. it won’t happen. But I can dream!
No, the legislature hasn't shown any reluctance to cut spending, it's just that revenue shortfalls are growing faster than they can cut. Though there was a lot of grumbling among the Republicans when Brownback cut $145 million from transportation.
I’m sure the liberals in KS are gleeful that they can fool people into believing tax cuts are harmful.
The problem seems to be that the jobs growth and the revenue stream just haven't materialized the way Brownback believed they would. I don't have an explanation why.
If states really wanted to boost their economy they would eliminate business taxes and privatize education at all levels.
Brownback's eliminated business taxes for small businesses and have slashed the taxes for other businesses. But the small businesses have not used the increased revenue to expand their workforce, and bigger businesses have not been hiring as well. As for education eliminating it is not only impossible but foolish as well. There is no alternative to the public schools given the number of students involved. Nor would it be financially possible for most people.
I imagine what is messing up KS is the same that is dragging down the rest of the country - Obamacare, more regulations, and lib policies in general.
No. Kansas refused to join in Obamacare and the Republicans have controlled the legislature for decades. The problem is that the revenue stream promised from cutting income taxes and taxes completely for many small businesses has not materialized. Revenue is way below projections. Job creation lags neighboring states. The legislature had cut all the easy stuff and are forced to cut the programs, like roadwork, that their people like.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.