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Thread: KU employees, other Kansas state workers begin receiving furlough notices

  1. #11
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    Re: KU employees, other Kansas state workers begin receiving furlough notices

    Quote Originally Posted by TheDemSocialist View Post
    Its not really that. Its failure of simple math. But its starting to look like its failing on purpose
    Here's what Paul Krugman says about the situatiion:

    The belief, Krugman concludes, “that tax cuts are a universal elixir that cures all economic ills is the ultimate zombie idea — one that should have died long ago in the face of the facts, but just keeps shambling along.”

    The states, Louis Brandeis famously declared, are the laboratories of democracy. In fact, Mr. Brownback himself described his plan as an “experiment” that would demonstrate the truth of his economic doctrine. What it actually did, however, was demonstrate the opposite — and much the same message is coming from other laboratories, from the stumble in Texas to the comeback in California…

    Nothing that has happened in the past quartercentury has supported tax-cut mania, yet the doctrine’s hold on the Republican Party is stronger than ever. It would be foolish to expect recent events to make much difference.

    Still, the spectacle of the Texas economy coming back to earth, and Kansas sliding over the edge should at the very least make right-wing bombast ring hollow, in the general election if not in the primary. And someday, maybe, even conservatives will once again become willing to look at the facts.

    Paul Krugman: Texas is a failed experiment in “reverse Robin-Hood” economic policy - Salon.com
    Brownback and the conservative crazies thought they had the answer to fiscal success. Instead they proved that the heart of conservative ideology, tax cuts, doesn't work as the driving principle of budgeting.
    Last edited by Joe Steel; 06-06-15 at 02:49 AM.
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  2. #12
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    Re: KU employees, other Kansas state workers begin receiving furlough notices

    Quote Originally Posted by Joe Steel View Post
    Behold the failure of conservatism.
    No, behold the failure of mismanagement.

  3. #13
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    Re: KU employees, other Kansas state workers begin receiving furlough notices

    Quote Originally Posted by Joe Steel View Post
    Here's what Paul Krugman says about the situatiion:



    Brownback and the conservative crazies thought they had the answer to fiscal success. Instead they proved that the heart of conservative ideology, tax cuts, doesn't work as the driving principle of budgeting.
    Sometimes tax reductions can make the marginal difference in improving an economy, but economic policy is far more complex. One can't automatically assume that tax cuts will always make an economy more competitive. Sometimes, barriers to competitiveness are structural and have nothing to do with tax policy. One example is labor pool quality and/or growth. Another example is a lack of robust in-state competition.

    In terms of the tax cuts, it seems that the tax policy that was enacted was more likely to distort the state's market function than facilitate it.

    From The Kansas City Star:

    The tax bill currently being debated largely protects a zero income tax rate for owners of limited liability companies and other businesses where profits "pass through" to owners untaxed...

    About 330,000 business owners pay no state income tax under a 2012 tax plan that was championed by Brownback.


    Kansas Senate halts tax debate to fix bill; House to consider plan to avert furloughs | The Kansas City Star The Kansas City Star

    What about other companies? Treatment was not equitable. There's no indication that the businesses receiving preferential tax treatment were, in fact, those that were most competitive, growing fastest, or most innovative. Indeed, the empirical data appears to suggest otherwise, as Kansas lagged behind most of its neighboring states in creating jobs since Governor Brownback took office. To the extent that resources may have propped up a less competitive sector of Kansas' economy, they may well have stunted the kind of market evolution that would typically occur in the midst of competition. Stunted market evolution can have high opportunity costs. At the same time, the state was stuck with a substantial and persistent revenue shortfall.

    Put another way, it appears that the Governor decided to pick "winners" and "losers" through tax policy by exempting certain types of companies from taxes (by type of organization, not any kind of economic merit) while treating all the others differently. Now that it's clear what kind of tax changes were enacted, I don't think it's surprising at all that the state's economy fared worse than those of neighboring states on such measures as employment growth and the state wound up with large revenue shortfalls. What's most ironic is that Governor Brownback almost certainly would argue that government should not micromanage the economy, yet by designing his tax program as he did, he engaged in micromanagement of his state's economy.

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    Re: KU employees, other Kansas state workers begin receiving furlough notices

    Tax cuts require spending cuts. Tax cuts require proper management. It seems more like the KS State Government is dysfunctional and has very little to do with political lean as much as it does with personalities.
    C.T.L.W. You figure it out



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    Re: KU employees, other Kansas state workers begin receiving furlough notices

    The first thing they do when they get in (the GOP) is cut taxes for their wealthy campaign benefactors.

    Unfunded tax-cuts that somebody has to pay for (guess who?).

    Then, *this* results!

    Over and over and over again ...
    "When fascism comes to America, it will be wrapped in the flag and carrying a cross." - Sinclair Lewis

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    Re: KU employees, other Kansas state workers begin receiving furlough notices

    Killing one person is murder, killing 100,000 is foreign policy

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