In this episode I address the troubling revelation by a key player in the framing of Trump that she is a Russian government informant. I also discuss a newly released text message which indicates that the Clinton email investigation was a sham.
Authored by: Matt Palumbo
If you happened to read the Left’s reporting on the so-called “failed Kansas tax cuts experiment,” over the past couple of years, you couldn’t be faulted for concluding that on the issue of tax cuts, the science is settled. Just take a look at some headlines:
- NPR: As Trump Proposes Tax Cuts, Kansas Deals With Aftermath Of Experiment
- New York Times: Kansas Tried a Tax Plan Similar to Trump’s. It Failed
- The Guardian: Kansas’s ravaged economy a cautionary tale as Trump plans huge tax cuts for rich
- Mother Jones: Trickle-Down Economics Has Ruined the Kansas Economy
- CNN: How the grand conservative experiment failed in Kansas
What do the Critics Allege?
The narrative is relatively simple. Kansas enacted tax cuts “for the rich,” had expected blockbuster economic growth that would help the tax cuts “pay for themselves,” when in reality the State’s economic situation worsened following the tax cuts, with dwindling revenues and no enhanced economic performance.
So What Actually Happened?
Kansas Gov. Sam Brownback promised tens of thousands of new jobs and an economic renaissance in Kansas. He was elected in 2011, pushed his legislative agenda through the Statehouse, and signed his tax cut bill in May 2012. It initially lowered the top personal income tax rate to 4.9 percent from 6.45 percent, and eliminated income tax on profits for owners of limited liability companies, sub-chapter S corporations and sole proprietorships.
State tax revenues dropped $700 million the first year of the scheme, but don’t blame the minuscule cut in the income tax for that. Blame the not-so-brilliant idea of making all profits from passthrough entities (and for the self-employed) tax exempt. According to Forbes, the passthrough provision was a last-minute addition that wasn’t properly researched, and it’s the achieves heal of the Kansas tax cuts.
Even the generally anti-tax Tax Foundation testified against the exemption, noting that it incentivizes corporations to restructure as LLCs without making any actual economic improvements. The Foundation cites this change alone as contributing $200-300 million towards Kansas’ State budget deficit. When the exemption was passed in 2012, it was projected that 191,000 entities would take advantage of the provision. By 2015, that number had grown to 393,814 – twice as much as expected.
As they note, “It’s important to note here that while decreasing taxes is generally associated with greater economic growth, the pass-through carve out is primarily incentivizing tax avoidance, not job creation.” Indeed, the policy change incentivized tens of thousands of Kansans to claim their wages as business income, rather than from employment.
Kansas Economy Suffered Because Oil Prices, Not Tax Cuts
The Kansas economy grew 0.2 percent in 2015, which represented a decline from from 1.2 percent in 2014. Kansas ended 2015 with two quarters of economic growth, meaning they entered 2016 in a recession. By the end of 2016, Kansas ranked 45th in private-sector job growth for the prior 12 months. Colorado lead the region with the 10th highest rate of private-sector job growth, while Missouri and Nebraska rank 31st and 39th respectively. This is the basis for the claims the tax cuts failed to stimulate growth.
However, Kansas was in recession in 2016 for the same reason Canada also briefly fell into recession the same year: a collapse in oil prices. Kansas ranks 10th in crude oil production, and the price of a barrel of crude fell from around $100 in 2014, to an average of around half that in 2015 and 2016.
As one columnist at Investors Business Daily noted, “When these hard-hit sectors [oil and natural gas] are taken out of the equation, the remainder of the private sector workforce in Kansas outperformed its neighboring states of Missouri, Nebraska and Oklahoma.
The Republican controlled Kansas legislature recently pulled the plug on these tax cuts, but it’s foolish to infer any national implications from them.
Poorly designed tax cuts don’t prove that tax cuts are bad, nor are the Kansas tax cuts even remotely comparable to the Trump tax cuts.
In this episode I address the growing surveillance state and how it will impact both criminal behavior and the behavior of innocent Americans. I also discuss the recent positive economic news and I show how the numbers differ from the Obama administration numbers.
In this episode I address the suspicious timing of the latest media attack on Jeff Sessions and what I think it says about the investigation into government malfeasance. I also discuss the renewed push for new tax cuts and the real world effects of our out-of-control spending.
In this episode I address the continued attacks on conservative voices and the efforts to suppress honest political debate. I also discuss some positive news about the economy that you may not be hearing about.
Here’s the audio your liberal friends wish didn’t exist. It’s Barack Obama saying he doesn’t get involved in ongoing investigations
The hacks in the media buried two troubling stories yesterday. This piece covers the details.
Explosive new revelations about Russian attempts to influence Hillary Clinton, while buying our nuclear fuel.
This piece asks some critical questions about the secret FISA courts. Does the Bill of Rights still matter? I hope so.
The proposed budget is a disaster. This piece sums up its major issues.
What actually happens during a government shutdown?
Read this terrific piece which points out some of the troubling connections between Fusion GPS, the Russians, the Clintons, and the Obama administration.
Finally, some justice in the Uranium One scandal.
Yes, Uranium was exported out of the United States. Liberals are lying about this inconvenient fact. Read this piece for clarification.
If the UK wasn’t supplying intelligence on Trump to the Obama administration then why did CNN report on it? Read this piece.
What did the NSA get in return for millions in support to the GCHQ?
Why did the head of the GCHQ resign unexpectedly?
This piece clearly lays out the real reasons for government deficits.
This piece debunks silly liberal talking points about the tax cuts.
Liberals are panicking over the growth of conservative media and their “solutions” are disturbing.
CNN can’t seem to get past their fascination with the “white truck.”
This piece points out why the democrats’ identity politics strategy is bound to fail.
More fake news from CNN about Trump.
Are we in another housing bubble?
Media credibility is collapsing, here are the hard numbers.
Here’s how the tax plan is going to impact the middle class.
It’s unbelievable what some federal employees are making compared to the rest of us.
Trump’s court appointments have been stellar, here are the numbers.
Obamacare is a scam. This article describes how they play with the numbers to deceive you.
What percentage of the tax load do the top 20% pay? The number may surprise you.
The dreadful Washington Post is in a panic as the credibility of the Mueller probe collapses.
Debunking myths about the investigation into Bill Clinton.
A classic, must-watch, Thomas Sowell clip.
The truth about “Trickle Down” economics, and why democrats love to lie about it.
Did your hear the latest fake news story about Trump?
Ignore the liberal media propaganda, the biggest tax cuts are going to the middle class. Here’s the evidence.
Do the Republicans have an advantage on the govt spending fight for next year?
The Democrats want you to believe that this a “tax cut for the rich.” That’s total nonsense and this piece explains why.
A Democrat in Virginia made a shocking announcement that even conservatives can applaud.
The Clinton surplus is a myth. Read this piece and you’ll never be fooled again.
Here is an easy to read chart showing federal tax revenue by year. Ask your liberal friends to show you where tax cuts “cost the govt money.”
Watch this liberal NBC host get completely destroyed in a debate on the tax bill.
This is the most disturbing article I’ve read in a long time about the destructive effects of liberalism on the citizens of inner-cities.
Yes, if you are middle-class, it is highly likely that you are getting a substantial tax cut. This handy chart should help.
A great piece about Trump’s response when one of his judicial nominees was scuttled.
The truth about the Obamacare mandate repeal is driving Democrats mad.
Here are the final numbers on the tax bill.
Here’s a simple-to-read chart of historical tax revenues to the federal government. Ask your liberal friends to look at the chart and tell you where tax cuts have “cost the govt money.”
Why can’t liberals tell the truth about taxes?
The Constitution won in Congress yesterday yet Democrats declared now “we’re all going to shoot each other.”
The media set a dangerous new standard for itself yesterday, this piece highlights their problem.
A loony California professor doesn’t want to debate Ben Shapiro but he does want to fight him MMA style.
Why is the standard Democrat response to every GOP policy proposal “people are gonna die!”
Here’s an interesting piece about the potential conflict with crypto-currencies.
Mike Flynn is going to plead guilty to lying to the FBI, when is Hillary Clinton going to prosecuted for her deception?
Debunking major liberal myths about tax reform.
Read this piece about the community development block grant scam.
No more block grants! There’s a better way.
These articles thoroughly debunk the Democrats’ latest disingenuous talking points about the GOP tax cuts.
CNN says they’re boycotting the White House Christmas party, but, who really cares?
Why is this rogue government agency collecting your financial records?
The Democrats took a huge loss yesterday in the courts.
There is a serious constitutional crisis brewing which should concern every American.
Here’s some terrific economic news.
If you’re a supporter of Net Neutrality and government control of the internet then you must read this.