Oh, Kansas, you so crazy – you elected this clown twice!
Kansas Gov. Sam Brownback (R) is calling all hands on deck to fix his state’s huge self-imposed budget crisis, which nearly cost him re-election this year, and the staunch conservative is now receiving an assist from an unlikely source: Obamacare.
The state’s well-documented budget troubles came after Brownback’s dramatic reductions in taxes since taking office in 2011. With its revenue drying up and cash reserves depleted, Kansas is staring at a $280 million hole in its $6.4 billion FY 2015 budget, which ends in June.
Brownback offered his proposal for closing that hole last week, a mixture of spending cuts and transferring funds from other parts of the budget to fill it. And second biggest of those transfers is $55 million in revenue from a Medicaid drug rebate program that was bolstered under the Affordable Care Act.
The short version then is this: Obamacare is helping Kansas address its fiscal crisis — even if Brownback’s administration seems loath to admit it.
(click here to continue reading How Brownback Is Relying On O-Care To Close Kansas’ Huge Budget Hole.)
No worries, Kansas will turn into Somalia soon enough, Governor Brownback has 4 more years of wrecking the state’s economy to prove Republican talking points about economics are faith-based. As long as you don’t live in Kansas, or near Kansas, or have any dealings with Kansas, or live in the same country as Kansas, you should be ok…
Two years ago Kansas embarked on a remarkable fiscal experiment: It sharply slashed income taxes without any clear idea of what would replace the lost revenue. Sam Brownback, the governor, proposed the legislation — in percentage terms, the largest tax cut in one year any state has ever enacted — in close consultation with the economist Arthur Laffer. And Mr. Brownback predicted that the cuts would jump-start an economic boom — “Look out, Texas,” he proclaimed.
But Kansas isn’t booming — in fact, its economy is lagging both neighboring states and America as a whole. Meanwhile, the state’s budget has plunged deep into deficit, provoking a Moody’s downgrade of its debt.
There’s an important lesson here — but it’s not what you think. Yes, the Kansas debacle shows that tax cuts don’t have magical powers, but we already knew that. The real lesson from Kansas is the enduring power of bad ideas, as long as those ideas serve the interests of the right people.
Why, after all, should anyone believe at this late date in supply-side economics, which claims that tax cuts boost the economy so much that they largely if not entirely pay for themselves? The doctrine crashed and burned two decades ago, when just about everyone on the right — after claiming, speciously, that the economy’s performance under Ronald Reagan validated their doctrine — went on to predict that Bill Clinton’s tax hike on the wealthy would cause a recession if not an outright depression. What actually happened was a spectacular economic expansion.
(click here to continue reading Charlatans, Cranks and Kansas – NYTimes.com.)
and as long as the morons in Washington don’t follow Brownback’s lead:
Remember, as far as Brownback is concerned, he has a popular mandate from the Kansas electorate. He ruined the state’s finances, won a second term, and sees no need to change course. So, predictably, he’s keeping the tax breaks that didn’t work and slashing public investments even deeper, since this is entirely consistent with the agenda endorsed by voters.
Shortly after the election, Brownback’s budget director said the administration “has no intention of revisiting the state’s tax policy.” Of course not. Why would failure need to be revisited?
Postscript: Two years ago, incoming Senate Majority Leader Mitch McConnell (R-Ky.) said of Brownback’s radical economic experiment, “This is exactly the sort of thing we want to do here, in Washington.” Something to keep in mind.
(click here to continue reading Brownback scrambles to clean up his mess | MSNBC.)