The interesting thing that happened when Kansas cut taxes and California hiked them

[applegrove]

The interesting thing that happened when Kansas cut taxes and California hiked them

By Jim Tankersley and Max Ehrenfreund at the Washington Post

https://www.washingtonpost.com/news/wonk/wp/2016/06/17/one-state-raised-taxes-the-other-cut-them-guess-which-one-is-in-recession/?postshare=8271466167046629&tid=ss_tw-bottom

"SNIP............


In 2012, voters in California approved a measure to raise taxes on millionaires, bringing their top state income tax rate to 13.3 percent, the highest in the nation. Conservative economists predicted calamity, or at least a big slowdown in growth. Also that year, the governor of Kansas signed a series of changes to the state's tax code, including reducing income and sales tax rates. Conservative economists predicted a boom.

Neither of those predictions came true. Not right away -- California grew just fine in the year the tax hikes took effect -- and especially not in the medium term, as new economic data showed this week.

Now, correlation does not, as they say, equal causation, and two examples are but a small sample. But the divergent experiences of California and Kansas run counter to a popular view, particularly among conservative economists, that tax cuts tend to supercharge growth and tax increases chill it.

California's economy grew by 4.1 percent in 2015, according to new numbers from the Bureau of Economic Analysis, tying it with Oregon for the fastest state growth of the year. That was up from 3.1 percent growth for the Golden State in 2014, which was near the top of the national pack.



............SNIP"

[REP]

1. There's only so much blood they can drain out of Johnson County, KS

California's wealth isn't concentrated in one county, unlike Kansas. Kansas has one wealthy county.

I think Brownback is an ass who should be burning in hell, but doing what we did in California in Kansas wouldn't work the same way.

[maxsolomon]

2. Last I saw, CA is still the Best Coast

KS is still landlocked.

And Supply-Side Economics is still horseshit.

[wolfie001]

4. They should've buried Raygun in horseshit!!!

Thanks for helping me with my 1000 post. It took many years!

[rhett o rick]

3. I am a little confused here. The Progressive Wing of the Party want

to raise taxes on the Wealthy while the other side, heavily funded by the wealthy are not so hot about it.

Whose side are you on?

[applegrove]

9. I'm for raising taxes on the wealthy. The language in the article is a bit confusing. But the point

is that California is working and Kansas not.

[rhett o rick]

11. But you didn't choose to side with the Progressive Wing that wants to raise taxes

on the Wealthy. You are supporting a candidate that is sponsored by the Wealthy.

[applegrove]

14. I don't see Bernie getting anything through congress. I'm voting for Hillary cause she knows how the

system works and is realistic. I also know she will raise taxes on the rich, not as much as Bernie, but incrementally like obama has. Seriously she has many progressives stands. If this election was a parliamentary one where the President would automatically have the majority in the congress if he/she wins, I would be more inclined to vote for Bernie. Bernie is an angel. I want someone who can pragmatically fight the hardest.

[rhett o rick]

15. Yes she sure knows how the system works. Hold on to your hat as we get fracking and

the TPP and oil pipelines across the country, and more wars for profits and stricter laws re. marijuana, and more Prisons For Profits,

Just because she know the way doesn't mean she will help those struggling among us.

[applegrove]

17. We disagree.

[rhett o rick]

19. Why do you think there was such a hard fight between the Sen Sanders and Progressive

Wing of our Party and the Clinton Wing? It's because we are miles apart on almost every issue. The 99% has been sliding into poverty for decades and the Progressives want that to end. The other wing indicates they are ok with the status quo. They are ok with Citizens United, Super Pacs and big money influence in our government. They are ok with an economic system that sees that Goldman-Sachs makes big profits while we have 2.5 million American children that are homeless. The Big Corporations could end the homelessness of 2,500,000 American children except their goal is to maximize profits which causes poverty not solves poverty.

[tex-wyo-dem]

29. +1000!

You just nailed the fundamental difference between Sanders and Hillary supporters in a nutshell 👍

[Major Nikon]

18. She authored 3 bills while in congress, Bernie authored 363 and counting

[aggiesal]

21. May be you can see this ...

http://www.alternet.org/election-2016/bernie-gets-it-done-sanders-record-pushing-through-major-reforms-will-surprise-you

[hollysmom]

26. not true

Sanders has been sneaking things through congress as amendments. Trust me the she knows how it works is just a meme - you and I know that there will be a lot of paralysis in her administration as republicans try and get her impeached - be careful who the Vice president nominee is.

[mrr303am]

10. +1,000

[Dem2]

13. You made that up

Vivid imagination there.

[rhett o rick]

16. Have you heard the expression that you don't bite the hand that gives you $150,000,000?

It's very naive to think that Clinton will tax the Wealthy.

[Dem2]

20. Oh, OK

I get it.

[Fla Dem]

23. HRC's position on taxes: reducing taxes on working families, increasing taxes on high earners.

Raising incomes and fighting inequality

A plan to raise American incomes

Hillary will:
-Give working families a raise, and tax relief that helps them manage rising costs.
-Create good-paying jobs and get pay rising by investing in infrastructure, clean energy, and scientific and medical research to strengthen our economy and growth.
-Close corporate tax loopholes and make the most fortunate pay their fair share.

Hillary believes the defining economic challenge of our time is raising incomes for hardworking Americans.

Too many families are working harder and harder, but still not getting ahead. Our country is standing again, but we’re not yet running the way we should be. From her first day in office to the last, Hillary Clinton will fight for you and for more take-home pay so you can get ahead and stay ahead.

https://www.hillaryclinton.com/issues/plan-raise-american-incomes/

So I'm on her side.

[tirebiter]

5. Where gives you that impression?

Because it's a mistaken notion. Just google "Hillary on taxes"

https://www.google.com/search?q=hillary+on+taxes&ie=utf-8&oe=utf-8#eob=m.0d06m5//short

There, I did it for you. Just for starters:

The wealthiest pay too little in taxes while the middle class needs more relief. I'm going to fix that. I’ll close corporate tax loopholes and make sure millionaires and billionaires can’t pay lower rates than middle-class families. And I’ll give tax relief to working families who are struggling with costs from college to health care.
Jan 6, 2016

[rhett o rick]

12. LOL. And you buy that? Why do you think she won't release her transcripts of what she told

the Big Corporations that have made her very, very wealthy. I bet she didn't tell that to the Wealthy. Sen Sanders honestly wants to tax the wealthy. Clinton might plug a loop hole here or there and give a $1,000 tax credit to struggling families but that's as far as she will go.

[AllyCat]

24. Tax credits!!! Oh goodie!!!

🙄

[ErikJ]

6. Well I bet the Koch brothers liked it.

Another billion to suck out of our economy into their Swiss bank.

[gratuitous]

7. You'd think this would come up from time to time

You know, when Republican Senate Majority Leaders or Speakers of the House were going on and on (and on and on) about "job-killing taxes" and stuff, that someone might point out this one weird trick. But no, our political commentators have their favored narratives, and contrary evidence must be studiously ignored for those narratives to be sustained.

[Fritz Walter]

8. What about the environment?

As I posted elsewhere on this site, California is using revenues from their cap-and-trade policy to install FREE solar voltaic panels onto the roofs of low-income citizens, not only decreasing our dependence on fossil fuels, but also helping them lower their utility bills.

As evidenced by recent Brookings Institute studies, expanding renewable energy is actually beneficial to everyone. Including and especially those of us who happen to like clean air and water that's free of fracking pollutants.

Except, of course, for the Koch Bros and their ilk.

It seems to me that Kansas -- where the potential for both solar and wind power would be abundantly plentiful and profitable -- and her citizens should jump onto that bandwagon. But then again, the fossil fuel interests -- including and especially the Koch spawn -- quash these ideas.

Kansans, sharpen your pitchforks!

[IronLionZion]

22. California has always had lots of millionaires

they are a very large state with all sorts of people but they do tend to have a disproportionately high number of very wealthy silicon valley and hollywood types

[AllyCat]

25. How about Wisconsin and Minnesota?

MN is way beyond us.

[Person 2713]

27. K&R Thanks

[lapfog_1]

28. As some who was born and raised in Kansas

and who has spent the majority of my life in California...

The problem with Kansas is that the best and brightest leave (yeah, I know, I'm bragging a bit).

There isn't much of a tech industry in Kansas (remnants of NCR in Wichita, and I worked in KC Mo and lived in Johnson County).

There isn't much creative to do in Kansas.

When I first moved to California in 1988, I had no idea about the real cost of living differential so I had to downgrade my standard of living quite a bit... I've long since rectified that situation. Yes, I pay a lot of taxes in California... but its well worth it to me to live in a Progressive State that also has a lot of employment options and recreational activities. Not to mention the variety of people who live here... just my options in food experiences alone make it worth while to live here.

I love my home state, proud to be a Jayhawk... But I'm so happy I left. What has happened to Kansas since I left is a travesty. I feel very sorry for those left there.

[Spitfire of ATJ]

30. Conservative economists also claim only conservatives are good at business....

They then claim liberal businesses are a failure because they aren't using conservative business practices.

Forget the math.