Taxes may be that dirty word you see at the end of every purchase from a store or it’s what April 15th symbolizes to you. It doesn’t matter if they’re sales taxes or income taxes, everybody pays taxes. These taxes once collected by the federal and state governments are the source of their income. Grover Norquist sold Republicans on the idea of “shrinking government down to a size that it can be drowned in a bathtub.” Currently, we have 3 idiot governors who followed Norquist’s suggestion and implemented reckless tax-cut policies.
A radical cut in income means that state revenue isn’t keeping up with state expenses. The shocking lack of income that follow big tax cuts has caused million dollar revenue shortfalls for Kansas, New Jersey, and North Carolina. Republican governors Sam Brownback of KS, Chris Christie of NJ, and Pat McCrory of NC have created between $445 million to $900 million revenue shortfalls because they cut taxes. Consequently, New Jersey and Kansas AAA bond ratings have been lowered. The NJ bond ratings have been lowered five times since Chris Christie became governor. Both Sam Brownback and Chris Christie blames their state’s revenue shortfall on Obama’s 2012 tax increase ($200,000 incomes and above) instead of their own reckless tax-cut policies of eliminating state income taxes.
These 3 governors have explicitly demonstrated what not to do. Someone needs to explain this to the MO legislature because they’ve just voted to mimic these states. Economists at the University of Missouri-Columbia have estimated that the tax cut will eventually reduce the state revenues by $620 million annually. But, Governor Nixon asserted it would punch a $4.8 billion annual hole in the state budget.
“Missouri’s Republican-led Legislature enacted the state’s first income tax rate reduction in almost a century by overriding the veto of Democratic Gov. Jay Nixon, who has denounced it as a reckless financial experiment. Republicans made the tax cut a priority after failing last year to override Nixon’s veto of a more expansive cut. The override vote capped an intense, multi-year campaign that included millions of dollars of advertising by tax-cut supporters and scores of opposition events organized by Nixon. The House voted 109-46, with Democratic Rep. Keith English of suburban St. Louis (District 68) joining all 108 Republicans.”
Republican’s who followed Norquist’s tax-cut agenda created shortfalls which subsequently lowered their state’s bond ratings. This is Insanity – The act of doing something over and over, expecting different results. Meanwhile, President Obama is successfully reducing America’s deficit because he raised income by increasing taxes on incomes over $200,000.