state government

Three Lessons from the Tax Defeat in Kansas

Leftists don’t have many reasons to be cheerful.

Global economic developments keep demonstrating (over and over again) that big government and high taxes are not a recipe for prosperity. That can’t be very encouraging for them.

They also can’t be very happy about the Obama presidency. Yes, he was one of them, and he was able to impose a lot of his agenda in his first two years. But that experiment with bigger government produced very dismal results. And it also was a political disaster for the left since Republicans won landslide elections in 2010 and 2014 (you could also argue that Trump’s election in 2016 was a repudiation of Obama and the left, though I think it was more a rejection of the status quo).

But there is one piece of good news for my statist friends. The tax cuts in Kansas have been partially repealed. The New York Times is overjoyed by this development.

The Republican Legislature and much of Kansas has finally turned on Gov. Sam Brownback in his disastrous five-year experiment to prove the Republicans’ “trickle down” fantasy can work in real life — that huge tax cuts magically result in economic growth and more, not less, revenue. …state lawmakers who once abetted the Brownback budgeting folly passed a two-year, $1.2 billion tax increase this week to begin repairing the damage. …It will take years for Kansas to recover.

And you won’t be surprised to learn that Paul Krugman also is pleased.

Great Moments in State Government: Bureaucrats Threaten Family with Possible Prison Sentence for Rescuing Bambi

As a public finance economist, I normally focus on big-picture arguments against excessive government.

If the public sector is too large, for instance, that undermines economic growth by diverting resources from the productive sector of the economy.

The damage is then compounded by a needlessly destructive and punitive tax system.

But I’ve also discovered that it helps to personalize the analysis by pointing out examples of ridiculous and wasteful behavior by government.

That’s one of the reasons I share horror stories as part of the U.S. vs U.K. government stupidity contest - such as the world’s most pointless sign linked nearby.

Some actions by government, however, belong in a different category. I’m not sure what word I would choose to describe them - perhaps venal, evil, despicable, reprehensible, or disgusting would be good options.

Am I being overly dramatic? Perhaps, but is there any other reaction when the government persecutes a family with possible jail time for rescuing Bambi?

Here are some absurd and disturbing details from the Indianapolis Star.

When Connersville police officer Jeff Counceller first encountered the baby deer, she was curled up in the corner of a front porch.It was clear the fawn was injured. Counceller could see the wounds… If left to its own, the animal would surely die… So the Councellers took in the deer, which they named Dani, cleaned and dressed its wounds and nursed it back to health, all with the intention of turning it out into the wild once it was big enough and strong enough to have a chance on its own. …she was unable to stand, and her maggot-infested wound was ugly. The Councellers contacted DNR at the time but were told to return the deer to the wild and let nature take its course. “It would have been a death sentence,” Jeff said.

So the family did what any decent people would do. They nursed the deer back to health. But decency and government often are in conflict.

Did Canada Steal Our Tenth Amendment?

Under the U.S. Constitution, the federal government was assigned specific limited powers, and most government functions were left to the states. To ensure that people understood the limits on federal power, the Framers added the Tenth Amendment: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Those delegated powers are “few and defined,” noted James Madison.

Six Reasons to Downsize the Federal Government

1. Additional federal spending transfers resources from the more productive private sector to the less productive public sector of the economy. The bulk of federal spending goes toward subsidies and benefit payments, which generally do not enhance economic productivity. With lower productivity, average American incomes will fall.

Will the Last Person to Leave Illinois Please Turn Off the Lights?

There is a very bizarre race happening in Illinois. The Governor and the leaders of the State Senate and General Assembly are trying to figure out how to ram through a massive tax increase, but they’re trying to make it happen before new state lawmakers take office tomorrow. The Democrats will still control the state legislature, but their scheme to fleece taxpayers would face much steeper odds because of GOP gains in last November’s elections.

Killing Obama’s ‘Build America Bonds’ Is a Big Reason to Like the Tax Deal

There are plenty of reason to like and dislike the tax deal between President Obama and congressional leaders. On the plus side, we dodge a big tax increase for the next two years. We also replace a goofy and ineffective “make work pay” tax credit with a supply-side oriented reduction in the payroll tax rate (albeit only for one year, so there probably won’t be much economic benefit).

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