Skip to comments.Revenue Shortfalls and Debt Downgrades in Kansas
Posted on 05/09/2014 1:34:54 PM PDT by ThethoughtsofGreg
Kansas policymakers were recently hit with two pieces of bad news: a state bond downgrade by Moodys investors and lower than expected income tax revenues. Opponents of Kansas tax reform and reform efforts outside the state are hailing this as a teachable moment on the problems with tax reform, but their faux-concerns are misplaced. Opponents misunderstand the source of these problems and the virtues of tax reform in putting the state on firming footing.
Lower than expected tax returns are largely the result of slow economy and federal tax policy. First quarter gross domestic product growth in the United States was an anemic 0.1 percent. Slow economic growth generally results in slow revenue growth, particularly for income tax collections. The Tax Foundation has recently pointed out that some of this may be the result of the expiration of bonus expensing, causing a notable fall investment early in 2014. This policy change, combined with a number of other federal tax and regulatory changes has created a difficult environment for economic growth in 2014.
(Excerpt) Read more at americanlegislator.org ...
“Sebellius’ fault!!!” (Might as well imitate the Leftist talking point, although here it’s more likely to be true.)
I am so sick of everyone carrying the democratic mantra of calling taxes “revenues”.
fact is, a Moody’s downgrade doesn’t happen from one bad quarter GDP. Supposedly, we’ve had 4 yrs of fabulous growth which usually cause State’s revenues increase. There’s no way we are being lied to about growth and the unemployment rate going so far down.
Our news media is worse than the Soviet Pravda.
But if the tax cut doesn't stimulate growth, you are in deep doo doo.
Since Kansas was doing what ALEC told them to do, ALEC now has to blame it on someone else.
Lowering tax rates always stimulates growth. Show me when it hasn’t.
Can you be more specific? I’m not schooled on internal workings of Kansas.
Read the article, and many others found at google news about the situation
I was just about to post that nothing in this article was specific either. Just general ramblings.
They keep using the term “tax revenue shortfall” without defining what they mean. I know it “sounds” like revenue is dropping but they give no figures.
Politicians and libs use measly words like “revenue shortfall” to usually really mean “not as much as we wanted” or “not as much revenue as we projected”. So, did revenues really go down and by how much over what period. And when were the supposed “tax cuts” encacted? Has enough time elapsed to be fully effective? It took a while for Reagan’s to take hold.
Thanks, I’ll check into it.
The article is from ALEC. They are not politicians or libs.
So? My questions are still valid. I want then to specify “revenue shortfall”. Is it that hard?
It’s exactly as I thought. All the top searches for this are full of vague and general descriptions. Not one gives me what tax revenues were in any given year and what they are now.
First google hit shows what I said above...”the shortfall over PROJECTED revenues” while the rest talk about a “budget shortfall of $700 million” without giving the numbers.
This is the game policiticans play. They “project” revenues and then spend accordingly but never lower the spending when the “projected tax revenues” don’t come in. They start with the spending side and then whine about “shortfalls” if they don’t get enough to cover their usually big increases in spending budgets. Even here in TN where we have to have a balanced budget they play this game.
Our local talk show host, Phil Valentine, loves to point out the “projected” revenues may be short but ACTUAL revenues are usually up over the previous year.
I’m not tryin to argue with you, I’m pointing out how it’s not specific and would love to see the actual numbers which I can’t find so far.
I found the numbers on google...KS 2013 revenue was down 1.12% from 2012 which was up 9.02% from 2011. The 2013 revenues were 7.8% over 2011. The shortfall in 2013 from 2013 was about $40 million total. So where did a $700 million shortfall come from? Doing the math says $660 million of that is increases in projected spending.
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