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The Importance of Being Stupid
May. 8th, 2014 09:12 amThere's an old saying that the definition of insanity is doing the same thing over and over again and expecting a different result. I'm rather feeling that about the US GOP, and many others, and their attitude to the magical elixir that is tax cuts. To quote Homer J Simpson, "is there nothing they can't do?"
Presented, for your consideration is this from Kansas and Missouri. Basically the great state of Kansas decided that they had to cut taxes, so cut they did. The idea being, that lower taxes would spur growth because people would have more disposable income and therefore money would 'trickle' down - etc... good old Supply Side economics.
So here's the thing, even after 30 odd years of trying this on a national level, the data is pretty mixed, and by mixed I mean, it's highly suggestive that it simply doesn't work. Reagan's miracle actually didn't do all that much, despite the hype, his levels of job growth weren't that much more than had happened under Carter, and his tax cuts were more of a tax shuffle. Not to mention, the fact that by relaxing credit rules, they fueled the boom that had people mistaking more debt for more wealth that led to the mess we just lived through.
Anyway, fast forward to Kansas in 2014, where the net result of the tax cuts is a $90m+ shortfall this April, on top of a larger one last year and now a downgrading of their debt on the basis that without more revenues the state is going to go into a death spiral. Oh and guess who bails out states like that? Yes, you and me.
Anyway, to compound this stupidity, the great state of Missouri decided to follow suit, and cut taxes too. The Republican Governor vetoed this on the grounds that he didn't want to be part of driving the state's economy into the ground, only to be over ruled by the state legislature.
And, here's the kicker. How much money does this actually save per year for the average Missouran? Oh, right, $50-$70 dollars. Yup. They'll be able to buy a whole extra tank of gas, or a cable for the AppleTV they can't afford either.
*sigh*
Presented, for your consideration is this from Kansas and Missouri. Basically the great state of Kansas decided that they had to cut taxes, so cut they did. The idea being, that lower taxes would spur growth because people would have more disposable income and therefore money would 'trickle' down - etc... good old Supply Side economics.
So here's the thing, even after 30 odd years of trying this on a national level, the data is pretty mixed, and by mixed I mean, it's highly suggestive that it simply doesn't work. Reagan's miracle actually didn't do all that much, despite the hype, his levels of job growth weren't that much more than had happened under Carter, and his tax cuts were more of a tax shuffle. Not to mention, the fact that by relaxing credit rules, they fueled the boom that had people mistaking more debt for more wealth that led to the mess we just lived through.
Anyway, fast forward to Kansas in 2014, where the net result of the tax cuts is a $90m+ shortfall this April, on top of a larger one last year and now a downgrading of their debt on the basis that without more revenues the state is going to go into a death spiral. Oh and guess who bails out states like that? Yes, you and me.
Anyway, to compound this stupidity, the great state of Missouri decided to follow suit, and cut taxes too. The Republican Governor vetoed this on the grounds that he didn't want to be part of driving the state's economy into the ground, only to be over ruled by the state legislature.
And, here's the kicker. How much money does this actually save per year for the average Missouran? Oh, right, $50-$70 dollars. Yup. They'll be able to buy a whole extra tank of gas, or a cable for the AppleTV they can't afford either.
*sigh*
