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Economy
See other Economy Articles

Title: The Kansas Experiment
Source: New York Times Magazine
URL Source: http://www.nytimes.com/2015/08/09/m ... src=me&WT.nav=MostEmailed&_r=1
Published: Aug 6, 2015
Author: CHRIS SUELLENTROP
Post Date: 2015-08-06 10:33:01 by Willie Green
Keywords: None
Views: 6903
Comments: 32

My uncle Gene is a state legislator in Topeka. This year, he and his fellow Republicans tried to do something pretty drastic with the state budget. And I got to watch the whole thing.

When I think of my uncle Gene, I think of a man who, late into the night at a particularly boisterous family wedding, would flatten his palms against the dance floor, extend his body parallel to the ground and then begin to undulate his legs and torso in a move known as the worm. Or I think of how, even later that same evening, he would agitate for a midnight meal at a diner in west Wichita, Kan., called the Golden Bell. Or of how, in his more abstemious workaday life, he left the family business — a small bank based in Colwich, a town of about 1,000 people in south-central Kansas, where he grew up alongside my father and 11 other siblings — so that he could expand a chain of pizzerias, which grew to include 48 franchises in five states.

But when you think of Gene Suellentrop — and you do think of him, even if you don’t know it yet — you just might regard him as a blight on the Republic. He is a partisan political warrior, which is a social type whose popularity probably ranks somewhere just above that of journalists, even for those who share his deeply conservative fiscal politics. And if you’re a liberal, coastal, cosmopolitan sort, at best you probably see him as a deluded if well-intentioned peddler of what the New York Times Op-Ed columnist Paul Krugman has called ‘‘right-wing derp, of doctrines that just get repeated (and indeed strengthen their political hold) no matter how wrong they prove.’’ Maybe you think my uncle Gene is an ideologue. Or maybe that’s another word for idealist.

Gene is 63 now, and his worm-dancing days are well behind him. He has served in the Kansas Legislature for the past six years, the last four as an ally of Gov. Sam Brownback, who is best known for his crusading social conservatism, including an unwavering opposition to abortion rights and same-sex marriage. Yet as governor, Brownback’s fiscal politics may be more remarkable.

In keeping with the state motto — ad astra per aspera, or ‘‘to the stars through difficulties’’ — Kansas politics have always been touched with a spirit of the avant-garde and the unorthodox, from popular sovereignty to prohibition and beyond. Today, thanks in large part to Brownback, the state is a petri dish for movement conservatism, a window into how the national Republican Party might govern if the opposition vanished. The 125 legislators of the House of Representatives include 97 Republicans; the Senate has an even greater percentage of Republicans, with only 8 Democrats among the 40 senators. With Brownback as governor, Kansas is in the midst of a self-described economic ‘‘experiment,’’ a project that, whatever you think of its merits, is one of the boldest and most ambitious agendas undertaken by any politician in America. Brownback calls it the ‘‘march to zero,’’ an attempt to wean his state’s government off the revenues of income taxes and to transition to a government that is financed entirely by what he calls consumption taxes — that is, sales taxes and, to a lesser extent, property taxes.

This fervor for budget-cutting is hardly unique to Kansas. At the federal level, the opposition party in the White House has kept the Republican majority in Congress from making much headway. But there are 23 states in the Union controlled entirely by Republicans, from statehouse to governor’s mansion — 24, if you count Nebraska’s technically nonpartisan, unicameral legislature — compared with just six (and Washington, D.C.) on the Democratic side. In these Republican states, the combination of the Great Recession with the anti-Obama elections of 2010 and 2014 has allowed legislators to make deeper cuts to the size and scope of government than has been possible in Washington for decades. In 2012, according to a report by the Pew Charitable Trusts, state governments spent $9 billion less than they did the previous year — the first such decline in 50 years. Many of these cuts have fallen on education. In Pennsylvania, for example, Gov. Tom Corbett cut funding for the state’s public universities by 20 percent, a compromise from his original proposal of 50 percent. Last month in Wisconsin, Gov. Scott Walker, backed by Republican majorities in the state House and Senate, cut $250 million from the University of Wisconsin system.

As many tax-cutting states have found later on, the party’s deep-seated opposition to tax increases of any kind can make balancing the budget a high-wire act. In Alabama this year, the state’s Republican governor, Robert Bentley, vetoed a bill from the Republican-controlled statehouse that would have removed $200 million from the state’s budget, including 5 percent cuts for Medicaid, prisons and the state’s department of mental health. Instead, he called the Legislature into a special session and asked for more than $300 million in new taxes.

The situation in Kansas was just as dire, if not more so. Brownback began the year by cutting education in the face of the state’s budget crisis, but he also proposed that legislators raise taxes on cigarettes and alcohol. The new taxes were part of an effort to close a staggering gap for fiscal 2016, estimated at $650 million in January, or more than 10 percent of the state’s $6 billion general fund. More urgent, the state still needed to cut about $300 million from this year’s budget as, month after month, tax revenues continued to arrive well below expectations. In January alone, the state took in $47 million less than anticipated. As Brownback saw it, these new taxes on consumption were necessary so that his priority — the march to zero on income taxes — could proceed.

Uncle Gene is not an architect of the march to zero, but he supports it, and he is one of the legislators in the Kansas statehouse who has helped to enact it and to preserve it. He is the vice chairman of the Tax Committee in the Kansas House, and he also sits on the Appropriations Committee. There are more important figures — the speaker of the House, the Senate president, the leaders of the Tax and Appropriations Committees in both houses, for starters — in the statehouse, but Gene is in the next tier. He’s one of the people whose support the governor usually relies on to get something done, according to Tim Shallenburger, Brownback’s legislative liaison and a former speaker of the Kansas House.

I called Gene in January, as this year’s legislative session began in Topeka. For a Kansan, and a Suellentrop, Gene is a talker, but if you met him you would probably find him a little bit reserved, although not taciturn. On this call, he sounded worried. ‘‘People are leaving Kansas,’’ he told me. The state has no mountains and no beaches, and thousands of jobs that were lost during the Great Recession, especially in Wichita’s aircraft industry, never returned. The march to zero, which includes an already-passed provision that exempts the owners of 330,000 businesses and farms in Kansas from income tax, was designed, Gene said, to turn Kansas into a different sort of tourist attraction. As he and his fellow conservatives see it, it’s an ‘‘open for business’’ sign, one they hope will draw free enterprise to the state, perhaps akin to the way the national debate over the expansion of slavery once drew young abolitionists from New England to the plains. At the very least, they hope it will prevent young people and existing businesses from moving elsewhere, to places with ski lodges or surf shops.

A couple of weeks later, I landed at the airport in Kansas City, Mo., and drove an hour or so west to Topeka, where Gene offered to be a sort of Virgil on my tour. He would introduce me to the principals in the state’s budget negotiations in the hope of highlighting what he called ‘‘a different philosophy’’ of how to make a state’s government revenues match its expenditures. I’ve spent much of my life moving between America’s two political territories — between places like Topeka and places like Washington, Boston and New York — and generally found that neither knows much about the other beyond caricature. For my part, I hoped to be able to reveal Gene and his colleagues as something other than the monolith of monsters and morons that they’re so often taken for in the political conversation, perhaps out of disregard for the moral disagreements that underlie the American political divide.

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Poster Comment:

Interesting (albeit lengthy) article revealing how blind adherence to conservative ideology leads to economic ruin.

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Begin Trace Mode for Comment # 15.

#2. To: Willie Green (#0)

Interesting (albeit lengthy) article revealing how blind adherence to conservative ideology leads to economic ruin.

A simple campaign slogan as ideology.

In the late 70s and early 80s the GOP conservatives came up with an idea that sounded like it was based on sound economic facts - that if you lower taxes it will mean the extra money people keep gets invested back into business and we have a boom. That is voodoo economics. This was coupled with the theory that if you have rich people keep more of their money they would invest it and thus also produce a boon to the economy. And if you raise taxed it will hurt the economy.

All those theories have been implemented and failed. Clinton raised taxes and the economy was booming in spite of that. Bush, jr lowered taxes and the economy collapsed anyway. There is no correlation. One has zero to do with the other.

But it sounds like a perfect campaign slogan and to Joe Blow Sixpack, who has no idea what economics are it makes economic sense like 2+2 = 4. Plus who wants to pay more taxes for stuff? Even though Joe Blow is demanding more stuff at the same time he does not want to pay taxes. Solution, lie to Joe Blow and tell him that by lowering taxes more taxes will be collected from a booming economy and we will pay for what joe blow wants while he pays less taxes. Durrrrrrrrrrrrrrrrrrrrr

Pericles  posted on  2015-08-06   11:19:10 ET  Reply   Untrace   Trace   Private Reply  


#3. To: Pericles, tomder55, GarySpFc, TooConservative, A K A Stone, Stoner, sneakypete (#2)

In the late 70s and early 80s the GOP conservatives came up with an idea that sounded like it was based on sound economic facts - that if you lower taxes it will mean the extra money people keep gets invested back into business and we have a boom. That is voodoo economics.

The voodoo economics was actually Carter's failed economy. Reagan's supply side recovered the US economy. The weakness you seek is not in Reagan's supply side economics but the failure of Congress (and Reagan as well) to curb the ever bloating federal budget.

Reagan was a politician and knew to get the economy going again and his policies through a House controlled by Tip O'Neal and the Dems, he had to compromise on some Dem pet spending programs.

There's more to economics than what you are opining on. The Reagan economy created the boom that extended into Clinton's two terms. It was the supply side retooling of industry and technology which led to the good growth of the 80s and 90s.

I always here this praise of the Clinton years, yet under his watch the tech market crashed (due to his admin going after MS et. al.) and at the end of his second term the energy industry went bust.

But let's go back in time an we will find out that Reagan and GOP conservatives were not the masterminds of lowering taxes to stimulate the economy. It was actually this guy:

JFK on the Economy and Taxes

Kennedy had campaigned on the slogan of “getting America moving again” (which the Nixon campaign staff had privately derided as the peristalsis plan). But, recovery from the 1958 recession had been very sluggish and unemployment remained perilously high—6.8% just after he took office. The Council of Economic Advisers urged him to attack unemployment with New Deal style spending but the president was worried that a large deficit ($7 billion) would be politically untenable in 1964. Unemployment did fall modestly, but it remained stagnant at nearly 6% well into 1963. The fact was that the New Frontier had been preoccupied with foreign affairs for three years and once the Limited Nuclear Test Ban Treaty was ratified, JFK realized that it was time to turn to the economy. The 1964 election was barely a year away and likely to be fought against an articulate economic conservative, Senator Barry Goldwater of Arizona.

In addition, JFK’s relationship with the business community had been uneasy from the start. His very public 1961 dispute with U.S. Steel president Roger Blough over an increase in steel prices had reinforced the business community’s suspicions of his motives. Kennedy had won the battle but lost the war—the price increase was canceled but U.S. Steel also announced that its new plants would be built abroad. By 1962, Kennedy’s domestic political fortunes seemed bleak. Unemployment remained high and the stock market had failed to recover after losing a quarter of its value. JFK also ignored the advice of key aides and endorsed efforts to enact medical care for workers over 65 under Social Security and risked his personal prestige by addressing a nationally televised “Medicare” rally in New York. By the time of the May 20 gathering, JFK knew the bill would fail in the Senate after defections by key Democrats, leaving him frustrated, furious and depressed.

The president finally decided that only a bold domestic program, including tax cuts, would restore his political momentum. Declaring that the absence of recession is not tantamount to economic growth, the president proposed in 1963 to cut income taxes from a range of 20-91% to 14-65% He also proposed a cut in the corporate tax rate from 52% to 47%. Ironically, economic growth expanded in 1963, and Republicans and conservative Democrats in Congress insisted that reducing taxes without corresponding spending cuts was unacceptable. Kennedy disagreed, arguing that “a rising tide lifts all boats” and that strong economic growth would not continue without lower taxes.

The battle over the tax cut and the deficit continued unabated through 1963. The House Ways and Means Committee voted a tax bill out of committee in August and the grateful president reiterated that lowering taxes was the surest path to full employment and lower deficits. Polls showed that over 60% of Americans favored the tax cuts. But, even with the public support of key business leaders like Henry Ford II and David Rockefeller, the Congressional log jam remained unbroken. JFK became increasingly convinced that domestic issues, the economy and civil rights, rather than foreign policy, would prove to be decisive in his 1964 reelection campaign.

I'm a firm believer we will never agree on these matters. That is because you see the government has a right to a citizens' earnings and property. I don't.

Taxes for the things we use which only government can efficiently supply (roads, bridges, other infrastructure, etc.) can easily be taxed by what is consumed. Use the road or bridge, pay a toll. Sales tax is a good way to collect these needed services as well.

But that is all past. Both parties have a majority of statists who want American citizens (and non citizens) reliant on THEM for their needs. So the page has turned and the leftists have won.

Frankly, I grew up in a house where by age 5 (Carter years) both my parents worked and my father at times (to send us to Catholic school) worked a second job at night or on weekends. So I don't know what rich folks spend their money on and why they need so much of it. So I cannot explain that dynamic. However, have witnessed some the greatest generosity from rich people. I've seen them build hospital wings, entire hospitals and pay for poor children to receive life saving surgeries and care. Not saying they all do this but that hardly ever gets mentioned.

So if you and I are not for lowering rich folk's taxes, allow them to donate more if they want. As I said, I don't understand being rich because I never grew up that way and am not now. I guess if I had all that money I would probably buy a farm grow some crops, a few hundred head of cattle, a new pick up truck with trailer, and donate the rest to St Jude's Children's Hospital.

redleghunter  posted on  2015-08-06   12:20:53 ET  Reply   Untrace   Trace   Private Reply  


#5. To: redleghunter, tomder55, GarySpFc, TooConservative, A K A Stone, Stoner, sneakypete (#3)

There's more to economics than what you are opining on. The Reagan economy created the boom that extended into Clinton's two terms. It was the supply side retooling of industry and technology which led to the good growth of the 80s and 90s.

Reagan lowered taxes and the economy tanked. No money came in. He raised taxed and the economy recovered and he borrowed a lot of money besides. I can live real well on credit cards that don't get paid off and are never cancelled if my minimum payment is lowered each time.

There is no - none - zip - correlation between taxation and economic booms or bust. And supply side economics have never worked.

Pericles  posted on  2015-08-06   12:47:47 ET  Reply   Untrace   Trace   Private Reply  


#13. To: Pericles (#5)

Reagan lowered taxes and the economy tanked. No money came in. He raised taxed and the economy recovered and he borrowed a lot of money besides.

What's the name of your home planet?

sneakypete  posted on  2015-08-06   15:39:37 ET  Reply   Untrace   Trace   Private Reply  


#15. To: sneakypete (#13)

I'm down to earth, petey...

Reagan slashed the top income tax rate from 70% to 28%, although bills passed in 1982 and 1984 later partially reversed those tax cuts. And he increased Deficit Spending to fund military Star Wars... As a result, debt as a share of GDP increased from 26.2% in 1980 to 40.9% in 1988... and Spook Daddy Bush continued the deficit spending until debt reached 48.3% of GDP in 1992. It actually peaked at 49.5% of GDP during the Bent One's 1st term, but eventually fell to 34.5% of GDP by the end of his presidency due to a combination of tax increases and cuts to military spending.

Willie Green  posted on  2015-08-06   16:10:39 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 15.

#20. To: Willie Green (#15)

Reagan slashed the top income tax rate from 70% to 28%, although bills passed in 1982 and 1984 later partially reversed those tax cuts.

In other words,Reagan did a good thing,and Congress is to blame for reversing it.

And he increased Deficit Spending to fund military Star Wars...

He had to,thanks to that peanut brained communist asshat from Georgia,Jim-mah Cawtur did his damnedest to destroy the US Military. He even had senior NCO's qualifying for food stamps before he left office. Reagan had the sane policy of challenging the Russians,compared to the Carter and Cyrus Vance policy of surrendering.

Carter was an absolute nightmare. Probably the most incompetent fool to ever sit in the WH,even when you include Obomber.

Spook Daddy Bush

A Dim wearing a R label,and one of our most corrupt presidents. Only matched in that category by Bill Clinton,the "son I never had" according to Babs Bush.

sneakypete  posted on  2015-08-06 17:27:05 ET  Reply   Untrace   Trace   Private Reply  


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