Kansas is going broke and predicted to be bankrupt within two
years, job creation is lagging the entire nation, and it is all down to
giving tax cuts…
By now, most Americans have heard the infamous line
from Albert Einstein that insanity is doing the same thing over and over
and expecting different results. A reasonable person would think that
doing the same thing with full knowledge it will not give the same
results is just stupid. One cannot fathom the repugican mindset that
drives them to believe if they continue their thirty year experiment in
trickle down economics, it will create jobs and be an economic bonanza
that is both stupid and insane because it is always a monumental
failure.
It is puzzling really, that if the so-called
supply-side economic theory has been a failure on the national level,
why Kansas repugicans thought if they started with a budget surplus,
squandered it on huge tax cuts for the rich, the state’s coffers would
be flush with money and a job creation explosion would follow. It has
not been that many years since the shrub squandered a budget
surplus on tax cuts for the rich that failed to produce the storied
economic benefits of trickle down economics, but apparently Kansas
Governor Sam Brownback (r) and the repugican legislature were asleep
during the shrub’s junta. Kansas is going broke and predicted to be bankrupt
within two years, job creation is lagging the entire nation, and it is
all down to giving tax cuts to the rich at the expense of the state’s
economic life and the people the repugicans were elected to serve.
The latest news from trickle down Kansas is that the state is so broke after Brownback signed a package of nearly $1.1 billion in
tax breaks for the rich last year, there are insufficient funds to keep
homeless shelters open. A homeless shelter specifically for families in
southeastern Kansas will have to close its doors
starting next week, and it is all down to the increasing state budget
shortfall that is a direct result of tax cuts for the rich. The CHOICES
Family Emergency Shelter provides a place to live for 350 homeless
people every year most of whom are children. The closure is another
victim of the state budget shortfall that is so severe that even after
cutting the funding by half for all of 2014, $100,000 was not enough to
keep the shelter open past next week.
According to Steve Lohr, the Executive Director of
Southeast Kansas Community Action Partnership, which runs the family
shelter, “this is the first time in our 48-year history that it hadn’t
received enough state funding to continue operating. We were defunded 50
percent.” Homeless families and children should not feel particularly
singled out as expendable to make sure the rich received their tax cuts.
Since squandering the surplus he inherited and giving over a billion in
new tax cuts, the state is facing a serious revenue shortfall that
prompted funding cuts for poor school districts and poor people who rely
on food stamps to survive.
When Brownback signed the tax cuts, Democrats and
some repugicans were intelligent enough to predict it would create a
revenue shortfall not unlike during the shrub-repugican tax-cutting
frenzy. At the time, former state repugican cabal chair Rochelle Chronister opposed
Brownback’s gift to the rich because “It bankrupts the state within two years.” The House Democratic leader, Paul Davis said,
“There is no feasible way that private-sector growth can accommodate
the price tag of this tax cut. Our $600 million surplus will become a
$2.5 billion deficit within just five years.” Brownback was unfazed and
said that his tax cuts would lead to even more success; “I firmly
believe these reforms will set the stage for strong economic growth in
Kansas,” and despite the unfunded $800-million price-tag, “I’m gonna
sign this bill, I’m excited about the prospects for it, and I’m very
thankful for how god has blessed our state.”
Likely, Brownback was also thankful to trickle-down economist Arthur Laffer, who guaranteed that
increased economic growth would deliver more revenue and create jobs
that thus far has the “State general fund revenue down over $700 million
from last year” according to Duane Goossen, a former state budget
director. Goossen also said the revenue drop is “a bigger drop than the
state had in the whole three years of the recession,” and that the
budget surplus that had been replenished since the recession “is now
being spent at an alarming, amazing rate.” It was just a little over a
month ago that the revenue shortfall was nearing the $500 million mark.
Of course, Brownback reverted to the typical repugican response when their economic malfeasance blows up in their
faces and blamed President Obama for Kansas’s revenue shortfall and
non-existing job creation bonanza from giving so-called “job creators”
tax cuts. Brownback said, “This is an undeniable result of President
Obama’s failed economic policies of increasing taxes and
overregulation,” and “the uncertainty over the fiscal cliff of 2012″
that was, like Brownback’s unfunded tax cuts for the rich, inspired by repugicans. If, as Brownback claims, Kansas repugican’s economic
malfeasance is President Obama’s fault, the national job creation
numbers would not be on the upswing and the overall economic picture
would not be stronger; Brownback’s assertion is patently false.
None of the “trickle-down” economic benefits have materialized and Kansas’s job growth lags
behind the rest of the nation “especially in the years following the
first round of Brownback tax cuts.” The revenue shortfall prompted
credit rating agency Moody’s cut the state’s credit rating in May, and
it is entirely because of tax cuts for the rich; not President Obama’s
economic policies, tax hikes, or overregulation. The travesty of another
failed experiment in trickle-down economics is that Kansas legislators
will have to make seriously deeper cuts to domestic programs with no
plans to repeal the wealthy job creators’ tax cuts.
If the shrub-repugican tax cuts for the rich, and
thirty years of failed trickle down economics, is not a cautionary tale
for America under repugican governance, then the state of Kansas’s
economy certainly is. Brownback’s failed economic strategy is minimal
compared to the annual Path to Prosperity budget House repugicans pass
with claims it will lead to economic growth and incredible job creation
all at the expense of the poor and middle class.
It is a sad commentary that Kansas cannot afford
$200,000 to keep a homeless shelter for families with children open, is
cutting education funding drastically, is cutting food assistance for
Kansas residents that cannot find jobs, and is still facing a
devastating revenue shortfall all to give the rich over a $1 billion in
tax cuts. It is not insane or stupid to do the same thing repugicans
think will deliver a different economic result; it is typically repugican and informs that Kansas repugican loyalties, and raison
d’ĂȘtre, is to enrich the already wealthy at the expense of the people,
including families with children being thrown out on the streets;
something Sam Brownback is likely “very thankful for how god has blessed
our state.”
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