Archive for Tax Cuts

Kansas State Budget

Posted in For Free Trade with tags , , , on June 9, 2017 by cavalier973

The government-worshipping thieves are crowing about recent developments concerning the Kansas State Budget, since “moderate” Republicans overrode Governor Brownback’s veto of a tax increase. The narrative is that the theory of “supply-side” economics has once again been shown to be a failure, since the State of Kansas is projected to have a budget deficit in 2019.

Perusing the recent articles that discuss the subject of the Kansas budget (here is an example), I see little to no actual numbers being discussed, beyond the amount of the projected deficit and the amounts allocated to departments in the Kansas government. It would be nice to have information stating something along the lines of: The Kansas state budget from FY 2015 to FY 2016 showed that state government revenues were $6.5 billion and $6.0 billion, respectively (showing an actual decrease in revenues), while expenditures for the same Fiscal Years were $6.4 billion and $6.1 billion, respectively (showing that the state’s expenditures were actually decreased).

According to a chart at the Kansas Budget Department’s site, it looks like state revenues did decrease after the 2012 “supply side” tax cut, from $6.412 billion in 2012 to $6.341 billion in 2013, and $5.653 billion in 2014. In 2015, revenues increased to $5.928 billion, and were projected to increased further in 2016 to $6.171 and to $6.326 billion in 2017.

Expenditures in 2012 were $6.098 billion, in 2013 they were $6.134 billion, in 2014 $5.982 billion, in 2015 $6.237 billion, in 2016 $6.322 billion, and in 2017 $6.398 billion.

This is from the FY 2017 Comparison report, which was published in August 2016, so the 2016 and 2017 numbers are estimates.

Notice, though, that while revenues dropped each year from 2012 to 2014, and increased thereafter, spending increased every year from 2012 to 2017, excepting for a drop in 2014 (and which by 2015 was higher than expenditures in 2013).

Something else about the Kansas Budget: courts declared that the state wasn’t funding schools equitably, and ordered the government to increase its spending in that area.

So, we have tax cuts, followed by decreases in revenue for a couple of years, followed by increases in revenues. Expenditures, however, continued to grow, in part due to a court system that compels the government to spend more than it otherwise would.

But  “supply side economics” is to blame. Riiiiight.

It would be interesting to see what all the State of Kansas spends its money on (I’m not interested enough to actually research it, however). A spokesman for the Transportation department complained about cuts to that department’s budget to pay for other expenditures. I wonder what items supersede spending on roads.

Usually what politicians do, when they are faced with a voting populace who wants to keep more of their money, is cut spending to schools, roads, and police, and then when people complain, say, “Hey, you wanted tax cuts; this is what you get for being greedy.” Meanwhile, a lot of unnecessary spending that is hidden in the esoteric elements of the budget are protected and increased. Stupid stuff that keep the politicians in office. When people knuckle under, and agree to let the politicians abscond with their earned wealth so that they can have police and schools again, the politicians double down, raise taxes, raise spending even more, and brag about how “fiscally responsible” they are.

There is a group of people; I can’t determine if they are in on the scam, or if they are just that stupid, who defend politicians’ lying, thieving ways. It only ends when the government runs out of other people’s money; when the makers get tired of being robbed by the takers, and leave the state.

What we need is something I call the “stupid people tax”. Anyone who says we need to raise taxes should automatically have his tax rates increased to 50% (not progressive; a flat tax of half their income). If he continues to maintain a need for  increased taxes, then his rate goes to 75%. If he still agitate for tax increases, then he gets hit with a 50% wealth tax in addition to the income tax.

Here is an article from a year ago that claimed that the tax rates were a success.

Here is another article from earlier this year, that includes an interview with Governor Brownback, in which he gives his theory why tax receipts are down. He claims that it is the sales tax revenues that are down, due to low commodity prices, while tax revenues from the lower personal income taxes are actually higher.

And here is yet another article that kind of puts things in perspective. An excerpt:

 

…from 1998-2012, “Kansas ranked 38th in private-sector job growth, according Bureau of Labor Statistics data crunched by the Kansas Policy Institute. In 2013—the first year after the tax reform—the state climbed to 27th place, and in 2014 it moved to 21st, placing it in the top half of states.” Also: ” In the second half of 2014, hourly wages in Kansas grew 3.5%, according to BLS data, far faster than the national average of 1.9%.”

I decided to see if the above statement can be verified. The closest I can find is this article describing each of the 50 states and the jobs growth since 2007.

In the grand scheme of things, the economic considerations with regard to taxes are secondary to the moral considerations. It is immoral for someone to covet someone else’s wealth and/or income, even for the purposes of “helping other people”.

Stuff Going On — 05/13/2017

Posted in For Free Trade, For God with tags , , , , , , , , , , , , , , , , on May 13, 2017 by cavalier973

The President of Turkey wants President Trump to not arm the Syrian Kurds, and also to hand over the guy who instigated last year’s coup. The presidents meet in D.C. next week.

♣ Last week I was called for jury duty, but was not ultimately selected. The case was “The State of Texas versus Aaron Gregory Lucas”. The jury found him guilty, and he was sentenced to life in prison. As with his trial in Colorado, he tried to blame the crime on his evil twin brother.

A music machine designed by Leonardo da Vinci is resuscitated. No word on whether Ron Howard will produce a mystery-thriller about the secret code discovered when the instrument is played.

I think Mr. Wenzel meant to say: “It’s Going to Blow”, because “It’s Gong to Blow” doesn’t make sense. In any case, the cure for FedGov budget problems is to cut spending, not raise taxes. Higher tax rates are a disincentive to productive work, which means that incomes are lower, so the taxes collected using the higher rate are collected from a smaller amount of income. It’s an unending spiral to the bottom. I desire that the FedGov cut its tax rates, but even more that it cut the amount of its spending . FedGov spending distorts the economy in numerous unseen ways. By it, the FedGov acquires resources, goods, and services that are then unavailable for market players. FedGov spending also incentivizes firms and individuals to divert resources into satisfying FedGov demands (which are based on political objectives and result in waste) rather than market demands (which are based on market objectives, and thus result in increases in productivity or consumption). Leaving rates where they are and cutting spending (truly cutting, not “reductions in the projected spending increases”) would be a better situation than cutting taxes and increasing FedGov spending–or, even, leaving spending at current levels.

Stuff Going On — 05/03/2017

Posted in For Free Trade, For God with tags , , , , , , , , , , , , , , , on May 3, 2017 by cavalier973

♠ The Chinese embassy in North Korea tells its citizens to get out of the country. The previous sentence is rather vague, what? Chinese citizens currently staying in North Korea are urged by the Chinese embassy to leave North Korea and head home to China. Better?

♣ I had jury duty yesterday, and made it to Round II, but did not ultimately get selected. The case was The State of Texas versus Aaron Lucas. The jury selection process was interesting. I had been called to jury duty one other time, and didn’t make it to the second round, probably because the person being charged worked for UPS, and I worked for FedEx at the time. But I digress. In Round II, the prosecution conducted a presentation, then the defense did a presentation; both presentations involved question-and-answer sessions.

The prosecution just wanted to make sure that the prospective jurors were emotionally capable of sitting in on testimony and evidence that involved child molestation and kidnapping. The defense wanted to make certain that the prospective jurors understood that they were only deciding the facts of this particular case, and that they would be willing to find the defendant “Not Guilty” on the specific charges he was facing, even if it was discovered that he had committed other criminal acts. This confused people.

I sort of understood what the defense was trying to say: that the Law mandates the prosecution follow certain rules, and violation of those rules would mean the prosecution lost its case. So, for example, the defense attorney said that his client was charged with molesting a child in a particular way, and that if the prosecution had determined that the child was, indeed, molested, but not in the way that the prosecution charged, then the jury would need to find his client “Not Guilty”. Several people were unwilling to follow this line of reasoning. “If he molested a child, then he is guilty, regardless of how he did it.” Makes sense.

On the other hand, if he had molested the child in another way, then the prosecution should have charged him with that. What this says is that the state did not have enough evidence to prove that Mr. Lucas had molested a child in any way other than the method that they charge him with. Another thought I had was that, since Mr. Lucas (presumably) did not take a plea bargain, then he must be reasonably confident he can win this case.

On the other hand, he tried to blame his conviction in a Colorado case on his “evil twin brother”, so he may not be exactly right in the head.

Transcript of Rush Limbaugh speaking with Vice President Mike Pence.

The Trouble with Trump’s Tax Cut. Quote: “The White House trumpets its proposal to almost double the standard deduction, from a maximum of $12,600 to $24,000. This would benefit many middle-income taxpayers and simplify the code by encouraging more people not to take itemized deductions.

But some of these families actually would face higher taxes if, as with earlier Trump and Republican plans, it also eliminates the personal exemption, currently $4,050 per person. It’s difficult to be precise since the plan lacks specifics on tax brackets where various rates would kick in.

Think of a middle-class couple with three kids. With the personal exemption gone, they’d have to add $20,250 to their taxable income. That’s nearly double the new “benefit” they’d get from the increase in their standard deduction of $11,400.”

Stuff Going On 04/27/2017

Posted in For Free Trade, For God with tags , , , , , , , , , , , on April 27, 2017 by cavalier973

This memo is for internal use only. Do not discuss the information contained in this memo with parties outside the company, or serious repercussions may result. This memo is for entertainment purposes only, and does not constitute an actual stance on the part of the writers, readers, or those who vetted the information contained in the memo. If the sovereign nation of North Korea really wished to get into a shooting war with the U.S.A. it would pursue a course of writing disparaging Tweets concerning the “true” net-worth of the American President.

♣ I’m interested to see the ACLU bring a lawsuit against the hospital that refuses to attach a giant, fuzzy tail to the fellow who claims he is really a squirrel.

♥ “New York Style” pizzas also don’t taste as good outside New York City, I’m told. These are a good substitute for Oreos™, by the way.

♦ Not a discussion of the Trump Tax Cut Proposal™, but a pretty good overview of the effects of tax cuts.

Stuff Going On — 04/26/2017

Posted in For Free Trade, For God with tags , , , , , , , , , , , on April 26, 2017 by cavalier973

♠ Three ISIS fighters killed, and five wounded, by razorbacks. Go Hogs!

Taxation is theft. The IRS employee is a microcosm of a larger problem, natch.

Bill Nye hates children. He is merely reflecting modern society’s prejudice against procreational sex.

Bankers doubt the Trump Tax. It’s not workable; he’ll never get it passed; well, since it got passed it won’t do what he says; well, the economy is improving, sure, but not because of the Trump tax cuts, Trump will never win reelection, well, Trump only won re-election because he lucked out with a good economy, Trump is a four-year lame-duck president, holy cow, is Trump incompetent, Trump was the greatest President of our time, now that he’s retired from public life.

Stuff Going On — 04/22/2017

Posted in For Free Trade, For God with tags , , , , , , , , , , on April 22, 2017 by cavalier973

♠ France is having elections tomorrow. The Female French Donald Trump seems to be doing well.

♣ The Drudge Report reports on power outages yesterday in San Francisco, New York, and at the Los Angeles International Airport. Drudge links to zerohedge, which does not in turn link to the original stories. I found the news reports Here, Here, and Here.

If you noticed I didn’t post a link for the Los Angeles Airport (LAX) power outage, it is because I could not find a news report about it. There was a power outage at LAX back in December, though.

According to the site inverse.com, the LAX power outages were reported by people on Twitter.

Pre-Columbian American Chickens and Scientific Consensus.

An excerpt: “The funny thing is that chicken bones have been found in archaeological dig sites through out North America for decades and because of Scientific Consensus, these artifacts were invariably thrown away as site contamination.  The archaeologists who found them deeply resented doing so because it meant the rest of their finds would now be under a question mark.”

President Trump says he will reveal his Tax Cut Plan next week. I hope it is as good as the tax cut plan I reviewed back during the Presidential Campaign.