http://www.economist.com/news/united-states/21629457-voters-kansas-will-pass-judgment-bold-experiment-tax-cutting-brownbackonomics
Sam Brownback, governor of Kansas, has been applauding low taxes and high growth since 2011, the year he took office. In 2012, he did a very ambitious thing with tax cuts. People with strong tax views will be watching the election for the governor of Kansas. Now Kansas is a highly Republican state. In fact, they haven't voted for a Democratic president since LBJ. Being the Republican candidate, Brownback should be winning by a landslide. However, he is tied with the Democratic candidate Paul Davis because of Brownback's tax plan. At first, his plan seemed reasonable. He wanted to cut the marginal taxes and drop the top rate from 6.45% to 4.9%. It was supposed to go down to as low as 3.9%, but the legislative cut rates and eliminated taxes on "pass through" businesses entities. This made revenue take a big hit of 6% below plan.
Many other states have been changing their income taxes in the last couple of years because of Brownback's bold tax plan. For example, Ohio cut taxes for individuals in the years 2012 and 2014 and small businesses in 2014. Maine, Illinois, and Idaho cut income tax and California and Maryland increased income tax for the rich.
If we are ever going to start to pay off our huge debt we will increase taxes and tariffs. Those who can pay need to do their parts in paying off the debt and those with less need to pay as much as they can.
ReplyDelete