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Re: is the shell game Trump's budget plan uses...

By: Cactus Flower in ALEA | Recommend this post (0)
Mon, 31 Jul 17 2:32 AM | 56 view(s)
Boardmark this board | The Trust Matrix 		Msg. 22616 of 54959
(This msg. is a reply to 22615 by clo)
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There's no clear link between tax cuts and growth or between tax increases and shrinkage.

Indeed, rather the opposite, which is why the Democrats have run stronger economies than the Republicans on average.

I don't doubt that lowering tax rates increases growth when the tax rates are very high. This is why communism doesn't work.

Nor that raising tax rates when they are low also generates opportunity. Some large scale things are only possible when a government acts (eg eminent domain to build freeways).

The best solutions employ the common good where it is beneficial and/or efficient (healthcare etc) and enterprise/markets where they are beneficial and/or efficient (soda etc) and the combination where that is beneficial and/or efficient (alternative energy/ farm subsidies etc).

Trying to simplify the world by saying markets are always right and government is always wrong is a nineteenth century conversation. I can't believe we still about argue the same stuff with such weak premises over and over.

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The above is a reply to the following message:
Re: is the shell game Trump's budget plan uses...
By: clo in ALEA
Mon, 31 Jul 17 12:32 AM 		Msg. 22615 of 54959

Exactly!

Kansas’ failed tax experiment offers economic lessons for Republicans at national level

By Sally Persons - The Washington Times - Monday, July 3, 2017

As President Trump and congressional Republicans ponder big tax cuts to boost the U.S. economy, Kansas has become a cautionary tale.

Prodded by Gov. Sam Brownback, a Republican, Kansas embarked on a major tax overhaul in 2012, reducing the top income tax rate from 6.45 percent to 4.9 percent and eliminating income tax on some businesses altogether.

Convinced they could turn the state into a heartland magnet for businesses seeking to flee high-tax states on the coasts, Republican lawmakers instead punched a huge hole in their budget. Facing mounting bills and shrinking revenue, the Legislature last month defied Mr. Brownback’s veto and moved to reverse some of its cuts.
Whether the Kansas experiment is a referendum on conservative, low-tax policies is an open question.

Obsession with tax rates often obscures other factors in businesses’ decision-making, such as the availability of a good workforce, quality of life for employees, and proximity to airports and other infrastructure, analysts say.

“You can’t just have the tax issue in isolation,” said Richard C. Auxier, a tax policy researcher at the Urban Institute. “There’s no clear link between tax cuts and growth.”

more:
http://www.washingtontimes.com/news/2017/jul/3/kansas-tax-cut-failure-an-economic-warning-to-repu/

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