The Derp
Gold Member
- Apr 12, 2017
- 9,620
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- #721
Kansas is not the USA and a single state is a poor barometer by which to evaluate national policy.
What they did in KS is "exactly" what they want to do in DC. McConnell even said so. So explain why trickle-down would work nationally if it didn't work in KS?
Many things in Kansas definitely did improve under the tax reform:
No. Nothing improved. KS' GDP growth was below the national average. It's rate of job creation was below the national average. It's rate of business creation was below the national average. It's surpluses were erased, school funding was cut, and the jobs just weren't there.
The Kansas economy is on a par with Nebraska in the middle of the pack and significantly better than other neighboring states, Missouri and Oklahoma
Is it? You sure about that? And the promise wasn't that Kansas would tread water...the promise was that the tax cuts would create all this growth. If you're now telling me that the growth Kansas had was on par with the states that didn't cut their taxes, then how is that a defense of the tax cuts??? It just shows the fundamentals of KS' economy aren't strong.
Welfare reform in the 1990's pretty well allowed the USA to essentially balance the budget and significantly slowed down the debt clock. If similar reforms are included in the proposed tax reform at the federal level, it is likely we will see similar results.
Welfare reform changed distribution of benefits from direct-from-DC to block grants to states. States were then required to use 33% of that block grant on federal welfare programs, and the remaining 67% can be spent on state-based programs. Only, that didn't happen. Instead what happened was that Conservatives took the welfare block grant, distributed out the minimum required, then put the rest of it toward the deficits created by their tax policy. So Conservatives quite literally use welfare to pay for trickle-down. Which would make Conservatism's fiscal policies entirely dependent on welfare. That's why red states want block grants...they need to fix their deficits that are caused by poor fiscal policy. If that welfare block grant gravy train were ended, all those red states that use the block grant to paper over their deficits would be forced to raise taxes and/or cut benefits, which drives people out of the state.
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