Reaganomics implodes in Kansas

Gov. Sam Brownback promised Kansans that his deep income tax cuts favoring the wealthy would bring lots of great new things to the state.

Instead, Brownback — and residents — have been enduring a steady drumbeat of bad news after the cuts took effect.

This week, a 31-hour stretch brought three different body blows to Brownback’s administration.

▪ At 9 a.m. Tuesday, the federal Bureau of Labor Statistics released a report showing how jobs had grown in metropolitan areas across America.

Unfortunately for Brownback, the report showed that the Missouri side of the state line had gained jobs at four times the rate of the Kansas side. And yes, that’s after including new employment in Johnson and Wyandotte counties.

So much for Brownback’s promise that jobs would be fleeing Missouri-side cities for Kansas after the tax cuts.

▪ Shortly after noon Tuesday, a judicial panel in Shawnee County released a ruling that Kansas was inadequately funding K-12 education.

That could mean the state would need to pump in $500 million extra a year or more to bring schools up to par.

That’s extremely concerning news for Brownback. He already will have to suggest how to slash the state budget in the coming months because the income tax cuts are on pace to help cause a $1.1 billion hole in revenues in this and the next fiscal year.

The ruling was a victory for schoolchildren and educators, one that Brownback and his allies quickly tried to deflect by saying they would further study the matter.

▪ Finally, on Wednesday afternoon, Kansas officials released figures showing the state had collected $15 million less than expected in December.

And that was after the state in November had dramatically lowered revenue expectations for the rest of this fiscal year.

Read more here: http://www.kansascity.com/opinion/o...-abouhalkah/article5332056.html#storylink=cpy
 
It is interesting how the above article fails to even mention agriculture.

Bold mine and underline mine.

  • Agriculture is the largest economic driver in Kansas, valued at more than $53 billion, accounting for 37 percent of the state's total economy.
  • In Kansas, there are 46,137,295 acres of land. Farmland accounts for 88.9 percent of all Kansas land. More than 21 million acres in Kansas is harvested for crops and over 16 million is pastureland for grazing animals.
  • The agriculture sector in Kansas employs more than 214,428 people through direct, indirect and induced effect careers.
  • Kansas farmers and ranchers are feeding the world. In 2012, Kansas exported nearly $4.9 billion in agricultural products. The top five exports include wheat, beef and veal, soybeans, feeds and fodders, and corn.
  • Click here for a full report on the estimated impact of agriculture, food and food processing sectors on the Kansas economy.

Since Brownback took office:
  • Wheat -28%
  • Soybeans -27%
  • Corn -36%
  • Beef +4%
I incorrectly assumed that the above would be mentioned on a trading forum by any member posting info regarding the Kansas economy.
 
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http://www.businessinsider.com/r-ea...tates-after-crude-slide-2014-12#ixzz3NtEoul8W
Alaska's 2015 fiscal year budget revenue forecast will have to be lowered by almost $2 billion, according to Fitch Ratings, because of the sharp drop in the state's forecast crude prices. That will widen Alaska's budget gap to almost $3.4 billion, Fitch said in a Dec. 11 report.

Do you also think that the reason Alaska lowered the 2015 budget is due solely to Reaganomics?
 
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The article also failed to mention any info from the below quotes:


http://www.forbes.com/sites/stevemoore/2014/09/27/a-taxing-tale-of-two-states/


These two states have adopted opposite economic growth and jobs strategies. In Kansas, Republican governor Sam Brownback cut income tax rates in 2013 on workers and small businesses, while in Illinois, in 2011 Democratic governor Pat Quinn raised the personal income tax rate to 5 percent from 3 percent with the corporate tax climbing to 9.5 percent- one of the most punitive rates in the nation. This was the biggest tax increase in Illinois history.


Both of these governors have come under attack nationally for their policies. So it’s worth examining which model has worked better.

Start with jobs. According to the Bureau of Labor Statistics, in the last twelve months (ending with August 2014) Kansas has increased private sector employment by 1.13% compared to just 0.66% for Illinois. Data for the year so far show Kansas gaining more private sector jobs than Illinois (7,800 vs. 6,200), even though Illinois’ population is more than four times larger. The growth of employment since January 2013 through August of 2014 was 72 % higher in Kansas compared to Illinois (0.78% vs. 0.46%).


On economic growth, the Bureau of Economic Analysis reports that Kansas’ real GDP increase was up 1.9 % last year – slighter higher than the national average of 1.8%. Illinois crept up 0.9%.
 
Gov. Sam Brownback promised Kansans that his deep income tax cuts favoring the wealthy would bring lots of great new things to the state.

Instead, Brownback — and residents — have been enduring a steady drumbeat of bad news after the cuts took effect.

This week, a 31-hour stretch brought three different body blows to Brownback’s administration.

▪ At 9 a.m. Tuesday, the federal Bureau of Labor Statistics released a report showing how jobs had grown in metropolitan areas across America.

Unfortunately for Brownback, the report showed that the Missouri side of the state line had gained jobs at four times the rate of the Kansas side. And yes, that’s after including new employment in Johnson and Wyandotte counties.

So much for Brownback’s promise that jobs would be fleeing Missouri-side cities for Kansas after the tax cuts.

▪ Shortly after noon Tuesday, a judicial panel in Shawnee County released a ruling that Kansas was inadequately funding K-12 education.

That could mean the state would need to pump in $500 million extra a year or more to bring schools up to par.

That’s extremely concerning news for Brownback. He already will have to suggest how to slash the state budget in the coming months because the income tax cuts are on pace to help cause a $1.1 billion hole in revenues in this and the next fiscal year.

The ruling was a victory for schoolchildren and educators, one that Brownback and his allies quickly tried to deflect by saying they would further study the matter.

▪ Finally, on Wednesday afternoon, Kansas officials released figures showing the state had collected $15 million less than expected in December.

And that was after the state in November had dramatically lowered revenue expectations for the rest of this fiscal year.

Read more here: http://www.kansascity.com/opinion/o...-abouhalkah/article5332056.html#storylink=cpy

And yet they voted him back in. So who's to blame?

(We won't bring up the matter of intelligence . . . )
 
Gov. Sam Brownback promised Kansans that his deep income tax cuts favoring the wealthy would bring lots of great new things to the state.

Instead, Brownback — and residents — have been enduring a steady drumbeat of bad news after the cuts took effect.

This week, a 31-hour stretch brought three different body blows to Brownback’s administration.

▪ At 9 a.m. Tuesday, the federal Bureau of Labor Statistics released a report showing how jobs had grown in metropolitan areas across America.

Unfortunately for Brownback, the report showed that the Missouri side of the state line had gained jobs at four times the rate of the Kansas side. And yes, that’s after including new employment in Johnson and Wyandotte counties.

So much for Brownback’s promise that jobs would be fleeing Missouri-side cities for Kansas after the tax cuts.

▪ Shortly after noon Tuesday, a judicial panel in Shawnee County released a ruling that Kansas was inadequately funding K-12 education.

That could mean the state would need to pump in $500 million extra a year or more to bring schools up to par.

That’s extremely concerning news for Brownback. He already will have to suggest how to slash the state budget in the coming months because the income tax cuts are on pace to help cause a $1.1 billion hole in revenues in this and the next fiscal year.

The ruling was a victory for schoolchildren and educators, one that Brownback and his allies quickly tried to deflect by saying they would further study the matter.

▪ Finally, on Wednesday afternoon, Kansas officials released figures showing the state had collected $15 million less than expected in December.

And that was after the state in November had dramatically lowered revenue expectations for the rest of this fiscal year.

Read more here: http://www.kansascity.com/opinion/o...-abouhalkah/article5332056.html#storylink=cpy

What has been implemented by Brownback in Kansas is not Reaganomics, it is Tea Party economics. There is a huge difference between Reaganomics, which involves tax cuts for the top earners with sustained government spending with prioritization and the expectation of trickle-down to the lower income families, - and Tea Party economics which involves "starving the beast".

Please see the other thread titled - How Tea Party tax cuts are turning Kansas into a smoking ruin for more details. http://www.elitetrader.com/et/index...re-turning-kansas-into-a-smoking-ruin.285208/
 
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