Thursday, July 24, 2014

Cut taxes for economic growth

The NPR program Morning Edition took a look at the race for governor in Kansas. There an interesting thing has happened. One hundred current and former moderate GOP state legislators endorsed – the Democratic candidate. Sam Brownback, the current GOP governor, did exactly what he campaigned on – cut taxes. He said it would boost growth and create jobs. He eventually wants to eliminate the income tax.
What it did was create a huge budget deficit and the state's economic growth is now slower than the national rate. Brownback says give the cuts time to do their work. He tells the story of meeting a small business owner who will use the tax savings to grow his business.

What is happening in Kansas demonstrates the fallacy of the GOP claims about tax cuts. They say lower tax cuts attract businesses to the state. But others (such as those 100 GOP lawmakers) are finding out what attracts business investment is a diverse and educated workforce and sound infrastructure. And massive tax cuts puts both in jeopardy.

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