Cutting Taxes to the Limit

In the Johnson County Sun of February 11, 2009, Steve Rose, the publisher, wrote that, since 1995, the Kansas Legislature had cut taxes to the point that they don't have enough money to pay for the government's obligations. Legislative Research estimates that $7.6 billion dollars has been given up to tax cuts since 1995. In the current fiscal year, all the rax cuts will amount to $600 million. You can read Steve's Memo for yourself.

Back on January 26th, I discussed Kansas Budget Woes. Although I mentioned how nice it would be if our revenue had been greater so we'd have a reserve for times like these, I came to the conclusion that no matter how much revenue government collects, politicians will find a wsy to spend it. Too bad they don't have the courage to raise taxes or roll-back tax cuts when the money is needed for government's day-to-day obligations.

I personally can't see the harm in an increase in the income tax during a recession. Those that have incomes from still having employment can stand for a small part of their income to be diverted to state spending. The cost of collection won't go up and it will all be spent, rather than saved. There is a real mythology about the economic effect of taxes, mostly fostered by those who want to get reelected.