Kansas' Tax Experiment

[StPaulHusker]

Did my point get lost in all of this? I want to reiterate that I was comparing Brownbacks "experiment" versus what Dayton did in basically the same time frame.

 

You want to argue Pawlenty and Dayton, go ahead but that wasn't the reason for posting the link to the article.

[BigRedBuster]

Did my point get lost in all of this? I want to reiterate that I was comparing Brownbacks "experiment" versus what Dayton did in basically the same time frame.

 

You want to argue Pawlenty and Dayton, go ahead but that wasn't the reason for posting the link to the article.

But, how can you compare what happened in Minnesota with Kansas and give credit to the governor's action when those actions haven't had any affect on the economy yet?

[StPaulHusker]

 

Did my point get lost in all of this? I want to reiterate that I was comparing Brownbacks "experiment" versus what Dayton did in basically the same time frame.

 

You want to argue Pawlenty and Dayton, go ahead but that wasn't the reason for posting the link to the article.

But, how can you compare what happened in Minnesota with Kansas and give credit to the governor's action when those actions haven't had any affect on the economy yet?

 

The tax increases did happen. And the $9.50 minimum wage increase by 2018 was a stepped plan. It goes up a bit every year or so. So he did raise the minimum wage. It just hasn't reached the $9.50 yet.

 

Large employers: $8.00 per hour starting on August 1, 2014; $9.00 on August 1, 2015; and $9.50 on August 1, 2016.

 

So, now, back to Brownback?

[BigRedBuster]

 

 

Did my point get lost in all of this? I want to reiterate that I was comparing Brownbacks "experiment" versus what Dayton did in basically the same time frame.

 

You want to argue Pawlenty and Dayton, go ahead but that wasn't the reason for posting the link to the article.

But, how can you compare what happened in Minnesota with Kansas and give credit to the governor's action when those actions haven't had any affect on the economy yet?

 

The tax increases did happen. And the $9.50 minimum wage increase by 2018 was a stepped plan. It goes up a bit every year or so. So he did raise the minimum wage. It just hasn't reached the $9.50 yet.

 

Large employers: $8.00 per hour starting on August 1, 2014; $9.00 on August 1, 2015; and $9.50 on August 1, 2016.

 

So, now, back to Brownback?

 

OK....but how did that tax increase affect the economy? As I posted above, the government didn't increase spending any faster than Pawlenty already was for almost all of his tenure to pump money into the economy.

 

As for the minimum wage....I'm assuming it was somewhere between 7.00 and 8.00 prior to going to 8.00 6 months ago. That is not a huge increase over a long enough period of time to have major affects on the economy.

 

Brownback is an idiot.

[StPaulHusker]

 

 

 

Did my point get lost in all of this? I want to reiterate that I was comparing Brownbacks "experiment" versus what Dayton did in basically the same time frame.

 

You want to argue Pawlenty and Dayton, go ahead but that wasn't the reason for posting the link to the article.

But, how can you compare what happened in Minnesota with Kansas and give credit to the governor's action when those actions haven't had any affect on the economy yet?

 

The tax increases did happen. And the $9.50 minimum wage increase by 2018 was a stepped plan. It goes up a bit every year or so. So he did raise the minimum wage. It just hasn't reached the $9.50 yet.

 

Large employers: $8.00 per hour starting on August 1, 2014; $9.00 on August 1, 2015; and $9.50 on August 1, 2016.

 

So, now, back to Brownback?

 

OK....but how did that tax increase affect the economy? As I posted above, the government didn't increase spending any faster than Pawlenty already was for almost all of his tenure to pump money into the economy.

 

As for the minimum wage....I'm assuming it was somewhere between 7.00 and 8.00 prior to going to 8.00 6 months ago. That is not a huge increase over a long enough period of time to have major affects on the economy.

 

Brownback is an idiot.

 

I would assume that the tax increase raised $1.1 billion and wiped out the budget deficit we faced

The minimum wage was $6.15

Yes

[BigRedBuster]

 

 

 

 

Did my point get lost in all of this? I want to reiterate that I was comparing Brownbacks "experiment" versus what Dayton did in basically the same time frame.

 

You want to argue Pawlenty and Dayton, go ahead but that wasn't the reason for posting the link to the article.

But, how can you compare what happened in Minnesota with Kansas and give credit to the governor's action when those actions haven't had any affect on the economy yet?

 

The tax increases did happen. And the $9.50 minimum wage increase by 2018 was a stepped plan. It goes up a bit every year or so. So he did raise the minimum wage. It just hasn't reached the $9.50 yet.

 

Large employers: $8.00 per hour starting on August 1, 2014; $9.00 on August 1, 2015; and $9.50 on August 1, 2016.

 

So, now, back to Brownback?

 

OK....but how did that tax increase affect the economy? As I posted above, the government didn't increase spending any faster than Pawlenty already was for almost all of his tenure to pump money into the economy.

 

As for the minimum wage....I'm assuming it was somewhere between 7.00 and 8.00 prior to going to 8.00 6 months ago. That is not a huge increase over a long enough period of time to have major affects on the economy.

 

Brownback is an idiot.

 

I would assume that the tax increase raised $1.1 billion and wiped out the budget deficit we faced Great. I think it's awesome the deficit is gone and that is why I would support a tax hike. I happen to believe balanced budgets are important. However, as for an immediate affect on the economy, the state hasn't increased spending to pump money back into the economy to give the masses more money.

The minimum wage was $6.15 Good. I believe read in one of the articles that this is only for large employers. What percentage of the population do you think that is? Again, this has only been 6 months.

Yes Agree

 

[AR Husker Fan]

And as predicted...

 

Kansas has had to increase taxes, but as might be expected, did so primarily on the backs of the middle class and the poor. The tax increase is consumption-based, through the sales tax, which has a disproportionately higher negative impact on the poor and middle class. The Kansas sales tax is now one of the highest in the nation They settled on the sales tax increase rather than restore the tax rates for business because, well, if you cut taxes on business, business will flock to the state and all those jobs will result in a huge increase in the number of tax payers.

 

Even though there's never been a case in which that occurred. And that lack of new business influx, coupled with the tax cuts on the wealthy and businesses is what blew a hole in the Kansas budget.

 

Oh, well...

 

http://www.usnews.com/news/politics/articles/2015/06/14/kansas-tax-cutting-model-tarnished-after-sales-tax-raised

[QMany]

F*ck Brownback.

[huKSer]

Bleeding Kansas

 

A patient has some anemia and goes to the doctor. The doctor says "Its not that you are low on blood, you have too much body. Let's do an experiment - trust me on this. Just let me cut off part of one of your appendages." So the doctor cuts off part of an arm, but fails to seal the wound. "See you next year"

 

The patient shows up concerned the next year wanting to change doctors. The doctor says "Trust me, it takes time. The sun is still shining and you are still breathing" The patient reluctantly agrees to keep the doctor.

 

The doctor runs some tests and agrees the patient isn't doing as well as expected, yet he insists on no blood transfusions.. "Let me call in some specialists" One insists that the body is still too big for the blood supply and wants to remove more limbs. Others want a band-aid of some sort, but argue over what type of band-aid to use. The doctor says he will cut off the remaining hand and both feet if no agreement is met. Finally a mish-mosh of band-aids are applied, but they are infected with tetanus which is guaranteed to make the patient worse. Yet the doctor still believes in the immaculate blood transfusion will save the day.

 

"See you next year"

 

"But I want a new doctor"

 

"Sorry, your HMO agreement says you have to stick with me next year. And I am retiring soon after that. Just don't get your hopes up"

[Whistlebritches]

Update for an old thread since this is the same economic plan Trump is pushing. Financially, things are not going well in Kansas.

 

Kansas tax collections fall $45M short of mark in September

 

Topeka — Another month, another shortfall in tax collections for the state of Kansas.

For the fifth consecutive month, and 10th out of the last 12 months, the Kansas Department of Revenue said Monday that taxes flowing into state coffers came up short again in September, this time by $44.7 million.

 

That report puts the state in a precarious budget situation. When lawmakers finally wrapped up their business at the end of a special session in June, the budget they had passed was expected to leave the state with only a $5 million balance at the end of the fiscal year.

 

Since then, though, total revenues — including both tax and nontax sources of state general fund revenues ­— have come in $67 million short. That means even if revenues turn around and meet projections for the rest of the year, the state would still end the year about $62 million in the hole.

 

The biggest contributors to the September shortfall were personal income taxes, which were $14.2 million short; retail sales taxes, which were $9.4 million short; and corporate income taxes, which were off by $17.5 million.

Revenue Secretary Nick Jordan said that individual income taxes are an indicator of jobs and employment. And while the amount collected in September fell short of expectations, it was still about $3 million higher than September 2015.

For the first quarter of the fiscal year, individual income taxes were $25.4 million, or 4.8 percent higher than the same period last year.

 

He said the shortfalls generally were the result of “a continued regional trend of low corporate tax receipts and sales tax receipts.”

 

But Senate Democratic Leader Anthony Hensley of Topeka blamed the shortfall on Gov. Sam Brownback’s tax policies, which he said should be a central issue in the upcoming November elections.

 

“Sam Brownback’s continued refusal to truthfully acknowledge and address the failures of his economic policies not only threatens the future of our state, but insults our intelligence,” Hensley said in a statement after the September report was released. “Kansas voters have the power to put an end to the ongoing Brownback budget crisis when they cast their ballots in November.”

 

There was no indication Monday from Brownback’s office that he intends to order any more spending cuts to keep state spending in balance before the Legislature convenes in January.

 

But the administration does plan to hold a news conference Tuesday that could change the discussion about state finances by shifting attention onto the revenue estimates themselves.

 

A task force that Brownback appointed in June is scheduled to release a report recommending ways to improve the state’s revenue estimating process.

 

For decades, revenue estimates for Kansas have been prepared by the Consensus Revenue Estimating Group. That includes officials from the Kansas Department of Revenue, the governor’s budget office, the Legislature’s nonpartisan research staff, and economists from the University of Kansas, Kansas State University and Wichita State University.

 

That group meets in secret and reviews data such as employment projections, inflation rates, farm commodity prices, oil and gas prices and other factors that could affect state revenues.

 

It then looks at historical patterns about how revenue flows into the state throughout the course of a year, and it issues two reports each year detailing how much money the group thinks the state can expect to collect.

 

The first report, issued in November, is used as the basis for the governor’s budget proposal. The second report in April is what the Legislature uses to craft its final budget.

 

An aide in Brownback’s office who is familiar with the task force’s report said it will include recommendations to use other sources of economic forecasts and more sophisticated economic modeling software programs commonly used in major businesses.

 

http://www2.ljworld.com/news/2016/oct/03/kansas-say-whether-september-tax-collections-fell-/

[ZRod]

So when doubling down doesn't work you try to get rid of what is telling you you're going to have a problem? Seems legit...

[zoogs]

Goodness gracious. Is Sam Brownback still in office?

[AR Husker Fan]

Just an update - this thread mentioned the fiscal issues that Oklahoma has; issues that are the result of the same failed policies of Kansas. Well, it's gotten so bad that Oklahoma legislators are NOT passing their beloved anti-choice bills because - oh, the irony - the state can't afford the cost of the lawsuits that inevitably ensue...and that the state inevitably loses.

[TGHusker]

This is an old tread - But it appears Kansas isn't the only one with a tax policy that falls short.

How on the other side of the coin we have Connecticut now discovering that you can't go to the well to often (tax the wealthy).

As always there needs to be a balance. Cutting taxes too much can hurt and taxing too much can also work against the states overall goals.

The trick is to find the sweet spot between tax levels and spending levels.

 

https://www.wsj.com/articles/connecticut-nations-wealthiest-state-may-be-tapped-out-on-taxing-the-rich-1495186203

[BigRedBuster]

This is an old tread - But it appears Kansas isn't the only one with a tax policy that falls short.

How on the other side of the coin we have Connecticut now discovering that you can't go to the well to often (tax the wealthy).

As always there needs to be a balance. Cutting taxes too much can hurt and taxing too much can also work against the states overall goals.

The trick is to find the sweet spot between tax levels and spending levels.

 

https://www.wsj.com/articles/connecticut-nations-wealthiest-state-may-be-tapped-out-on-taxing-the-rich-1495186203

There is a happy medium. Both extremes in taxation (like everything else in life) is not healthy.