How else are you supposed to interpret this laughable sentence, other than to think the author actually believes tax increases lead to job growth, and prosperity? If he isnt making that claim then he is intentionally misleading readers into believing California is in a position of economic strength, which is the complete opposite of reAlity.
How Tea Party tax cuts are turning Kansas into a smoking ruin
- Thread starter gwb-trading
- Start date
California economic stats are slightly less reliable than those from the Cold War era USSR.
as someone who lives here... that is absolutely true.
the administration here is about as trustworthy as Carney or Baghdad Bob or worse reid and pelosi.
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the administration here is about as trustworthy as Carney or Baghdad Bob or worse reid and pelosi.
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LOL! I wouldn't limit that to California. Pravda would be too embarrassed to tell the lies this administration tosses out on a daily basis.
His argument throughout the piece is that tax cuts do not (necessarily, see also: Crowding Out) lead to growth. And it's clear from the CA experience that tax increases (nor a severe drought, interestingly) do not necessarily impede economic growth.
Now, about that KS 4.8 % unemployment. When the announcement about such is made for the nation, "certain" posters here are quick to point out that the number means little, and hides a lot of problems. So it's quite possible the same principle applies to KS.
Maybe so, but they are still almost twice as good as california when it comes to job creation, using a flawed number.
With all things being equal higher taxes weakens an economy, and lower taxes strengthen an economy. If you were to put two identical states side by side, and one had lower taxes than the other, the state with the lower taxes will have more economic growth. Taxes and government are a trade off, we are willing to sink some of our money into it in order to have some basic services centralised, but we do so at a cost to economic growth.
Not when the economy is in recession. Particularly when it is at the zero lower bound. The economy is awash in unused capital and labor, there is an excess of savings demand over investment demand. So a tax cut will do pretty much squat.
Without looking into it more, because my office is too damn hot tonight, I'd guess that KS'rs used their state tax savings for deleveraging, so there was no big bump in demand, no consequent expansion of supply, and so no increase in GDP and revenues.
And, all else being equal, businesses will move from the higher taxed state to the lower taxed one.
Why not?
Its worked great for the Federal budget.
Kansas has a balanced budget provision. By law it will have to cut spending, re-raise taxes, or both, for the next fiscal year. Furthermore, as a net taker of federal benefits (though a rather minor one, comparatively), it's shortcomings have to be made up by all US taxpayers. (Not that anyone is complaining, KS remains a handy way to get from Nebraska to Oklahoma.)