income tax

Something About the Speaker (Footnote Fury)

House Speaker Paul Ryan (R-WI01) speaks at his primary night press conference, 9 August 2016, in Janesville, Wisconsin. (Photo by Darren Hauck/Getty Images)

“The new Paul Ryan tax cuts make the Bush tax cuts look like socialism.”

Jonathan Chait

Steve Benen frames the issue well enough:

House Speaker Paul Ryan (R-Wis.) has largely pulled off an impressive public-relations gambit in recent years. The Republican leader has recast himself as an anti-poverty crusader, without making any meaningful changes to his far-right agenda, simply by using the word “poverty” a whole lot.

But it’s occasionally worthwhile to look past the rhetoric and focus on the hard data ....

.... Ryan’s tax plan is crafted in such a way as to give 99.6% of the benefits to the wealthiest of the wealthy by 2025. The other 0.4% would be divided up across the other 99% of us.

This is a feature, not a bug, of the House Speaker’s approach to economic policy. Ryan genuinely believes that massive tax breaks for those at the very top will spur economic growth that would, in time, benefit everyone. For the Wisconsin congressman, trickle-down policy, its track record notwithstanding, remains the most responsible course to broad national prosperity.

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A Kansas Story

Great Seal of Kansas (detail)

It was not so long ago that Don Gonyea of NPR filed a report on the gubernatorial race in Kansas:

This isn’t your typical incumbent-in-trouble story, though. In office, Brownback has done exactly what he said he would. But many, many voters aren’t happy, including a lot of Republicans.

Big tax cuts that Brownback championed have left Kansas with a serious budget problem ....

.... Some of the loudest complaints have come from moderate Republicans. This summer, 104 Republicans — current and former Kansas officials — held a press conference to endorse Davis.

Brownback’s problem is that in fulfilling his promise to alter the state’s financial structure, he failed to fulfill the other part of his promise, that doing so would help Kansas.

In the first gubernatorial debate recently at the Kansas State Fair, Brownback addressed the state’s economic issues. “Our unemployment rate is 4.9 percent. We have a record number of Kansans working. We have the fastest-growing economy in the region and more new business created than ever in the history of the state,” he said.

But Democrat Paul Davis countered with a darker view of things, saying the deficit is projected to hit $1.3 billion in five years.

“Our credit rating has been downgraded three times. We’re 45th in the nation in new business creation,” Davis said. “In 2013, more businesses closed up shop than opened shop. It’s because we have an economic experiment that isn’t working. Let’s return to a proven Kansas model of growing our economy, and that’s how we’re going to help Kansas.”

Many of Gov. Brownback’s critics foresaw htis outcome. The question is whether or not the hardline Republican can convince voters that, “The sun is shining in Kansas and don’t let anybody tell you any different.”

What about the numbers? Will they say anything different, or will they reveal the sunshine?

Right.

Josh Barro explains:

Kansas has missed its tax revenue targets again, and the state is in for new fiscal pain as a result.

You may recall that Kansas gained national attention back in June because it had cut income taxes and lost a lot more revenue than lawmakers had anticipated. For fiscal year 2014, which ended on June 30, the state collected $330 million less in taxes than it had forecast, and $700 million less than it had collected in the prior year.

Those are big numbers in a state that spends about $6 billion annually from its general fund, and the revenue weakness led both Moody’s and Standard & Poor’s to cut Kansas’ credit rating this year.

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