Last week the Kansas House passed by a mere six votes a tax change package that could have a sizable impact on the state. The bill called for cutting individual income tax rates, exempting 191,000 businesses from income taxes, and reducing the state sales tax from 6.3% to 5.7%.
The idea is to provide tax relief for Kansans and make the state more attractive to businesses who may consider moving here, or leaving here.
Fine. But the legislature’s staff projected the plan would create a budget shortfall of more than $2.7 billion by July 2017.
Proponents will say the tax cuts will result in job and wealth creation, which will actually generate more state revenue … and the budget will be balanced.
I believe in fiscal responsibility in government. I think we should spend what’s necessary and finance it with sufficient tax dollars. The so-called “trickle down” economics never seemed to quite trickle down far enough to reach my house.
Shall we roll the dice?
Our thought for today is from Laurence J. Peter:
“An economist is an expert who will know tomorrow why the things he predicted yesterday didn’t happen today.”
Steve, try checking the history of tax and revenue. Generally, taxes go down, revenues go up. who knew? Check out the Laffer Curve http://en.wikipedia.org/wiki/Laffer_curve . Detroit, St Louis, New York, yada yada yada? I wonder though, will there everbe enough for people like you? “People suffer dam it, and the government must do something!!”
Tax me once~~
Tax me once, tax me twice, tax me three times and I move my aircraft factory somewhere else.