In tonight’s Republican debate, there was a prayer service featuring a liturgical petition and response. The petition was given by the Fox Business, fair-and-balanced moderators: “Oh Reagan, thou gave us tax cuts.” The response was from each and every candidate: “And we shall double down on them.” This always was thoughtless policy, but Kansas makes the stupid in it obvious.
Kansas Governor Sam Brownback has said, “On taxes, you need to get your overall rates down … to create growth.”[i] There is nothing new in that. It is what every Republican says (one suspects, five times a day while bowing toward the Reagan Ranch in Santa Barbara). It also is wrong, as Brownback is proving.
Brownback called his massive 2012 tax cut “a real live experiment.”[ii] Three years later, the Kansas economy is a train wreck.[iii][iv][v][vi] Brownback is both backtracking and cheating: “Now, Kansas's red ink has left the governor red- faced. Brownback is asking Republican state lawmakers to slow the income tax cuts over the next few years, raise taxes on cigarettes and alcohol, overhaul school funding, and divert money from the state's highway fund in order to balance the budget.”[vii]
There is nothing new in that, either. Reagan had to do a similar dance to avoid making the deficit any worse than his tax cuts already had made it.[viii] His own people have said as much,[ix] as Brownback must have known. Brownback also must have been aware of an analysis by the Congressional Research Service[x] that I have reviewed in a previous diary. The analysis used data, not theories or curves drawn on napkins but data, and found no correlation between taxes and economic growth or any of the mechanisms that Republicans site as causing growth. (More below the break.)
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