GOP Discovers: You Cut Taxes, You Get Less Tax Revenue

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    Jun 28, 2014 3:15 AM GMT
    NYT: Kansas has a problem. In April and May, the state planned to collect $651 million from personal income tax. But instead, it received only $369 million.

    In 2012, Kansas lawmakers passed a large and rather unusual income tax cut. It was expected to reduce state tax revenue by more than 10 percent, and Gov. Sam Brownback said it would create “tens of thousands of jobs.”

    By creating this preference for some types of income over others, Kansas has run into at least five problems:

    1. It’s sometimes possible to turn taxable salary income into untaxed “business” income.

    2. A lot of the beneficiaries of the tax break won’t be small businesses.

    3. It’s not clear that there’s anything special about small businesses for the purpose of job creation.

    4. Some of the revenue loss doesn’t even benefit taxpayers.

    5. The state budget is suffering.
  • coolarmydude

    Posts: 9190

    Jun 28, 2014 3:58 AM GMT
  • tj85016

    Posts: 4123

    Jun 28, 2014 10:47 AM GMT
    and we thought dumb ole Ronnie was dead icon_lol.gif

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    Jun 29, 2014 11:58 AM GMT
    In other news, a recent study conducted by the statistical analysis team at the University of Underachievers has determined that water seems to have the physical properties of being wet. This is only a preliminary study, though, and more research is currently underway.
  • roadbikeRob

    Posts: 14052

    Jun 29, 2014 1:15 PM GMT
    It is stupidly obvious that if you cut tax revenue, the state budget is going to come up short. Same exact thing for federal, county, and local budgets. One of the primary culprits is that taxes went down but for some uncanny reason, the brain dead politicians both republican and democrat forgot the other equally important part- cutting government spending. It is basic math, if you cut into what you take in as revenue, than you have to make equal cuts in the amount that you spend. But I keep forgetting that the know-it-all wags in both major parties have the formula all figured out and that us everyday working people just don't understand. Go figure.