Conservative Dream In Kansas Is Reality Nightmare

The conservative dream world that Sam Brownback has built in Kansas has turned out to be a nightmare for the people who actually have to live there. Brownback, with input from that infamous economist Arthur Laffer, slashed taxes and promised that this would unleash a torrent of new jobs and increase revenues for the state. Unfortunately, the only torrent that has been unleashed is a tsunami of debt and the increase in jobs has been virtually non-existent. In July, Kansas’ unemployment rate actually increased by 0.3% as the state lost over 5,500 jobs. This has come on top of 4% cuts in services across the state that merely mitigated the deficits the state was running up. And a slowing economy probably means even less revenue for the state and increasing deficits.

Arthur Laffer has been spouting his theory that reducing tax rates can somehow generate more revenue for nearly 3 decades now. But there is virtually no real world evidence of this ever taking place. Studies have shown that it might possibly occur when tax rates are at 70% or 80% and they are cut somewhat below that. But the majority of citizens in the US have never faced tax rate that high and the absolute top earners in the US haven’t seen tax rates like that in half a century. There is no evidence that cutting rates when they are already below 50% or 60% have ever increased revenue. In fact, the evidence has shown that it merely reduces government income and feeds an increasing debt. Most economists agree with George H. W. Bush that it is simply “voodoo economics”. It is time to put this myth to an end once and for all and call the curve by its more appropriate name – the Laugher Curve. And anyone who dares invoke it again should be laughed right out of the room.