For the better part of a decade, Kansas government has been consumed by tax policy. Residents first endured former Gov. Sam Brownback’s “experiment,” which resulted in yawning deficits, budget cuts and credit downgrades. Teachers fled. Prisoners rioted. State agencies crumbled. Arduous years of rebuilding followed, under the guidance of Gov. Laura Kelly and a more responsible Legislature.
Taxes and revenue aren’t a joke for Kansans.
But one of the architects of that failed policy has the gall to laugh at us.
“When your biggest criticism of me is Kansas, I mean, come on,” economist Art Laffer told the Washington Post this month. “What the hell is Kansas? There was no cataclysm. It was boring old Kansas before and after.”
Laffer, if you didn’t know, helped popularize the whole idea of supply-side economics. Broadly, that’s the discredited concept that cutting tax rates on wealthy people and rich businesses will stimulate the economy and actually increase government revenue. By extension, that growing economy will help middle-class and poor people.
This optimistic-to-the-point-of-delusion policy earned it unforgettable nicknames: “trickle-down economics” or “voodoo economics.”
Laffer earned $75,000 for consulting on the Kansas tax plan. Rather than apologize, rather than beg for forgiveness, he decided to mock us. (A tip of the hat to my friend Joel Mathis, columnist for the Kansas McClatchy papers, who spotted this diss first.)
Kansans have weighed in. The midterm elections showed the state doesn’t want unified GOP government. The last such combination of right-wing governor and Legislature created catastrophic revenue reductions. Brownback didn’t end up with economic growth or a victorious presidential campaign. Instead, he earned the second-lowest approval ratings of any governor in the United States.
Or as Michael Mazerov of the Center on Budget and Policy Priorities wrote in the definitive account of the disaster: “The dismal results of the 2012-17 Kansas experiment are consistent with the majority of academic studies on the relationship between state personal income tax levels and state economic performance — and with the experience of most states that have pursued similar policies.”
Determined tax-slashers — inside and outside Kansas — might want to examine that record before spreading their unholy gospel further.
Supply-side lovers
The religion still has its disciples, of course.
Rich people and GOP politicians alike adore supply-side economics.
Why wouldn’t they? Under the theory, society’s wealthiest pay less in taxes while anti-government Republicans amass examples of dysfunction. The wealthy assuage their guilty consciences by telling themselves they can do more good by making more money. The politicians can point to underfunded and underperforming services as a reason to privatize them. Both groups benefit while the rest of society suffers.
Tax revenue supports vital infrastructure, social services and public safety. Without contributions from everyone, including the wealthy, the system shudders to a standstill. While supply-side plans supposedly increase tax collections, they seldom produce the promised boost.
