In another blow to the legitimacy of trickle-down economics, Republican governors are proving that giving more money to the rich does not create jobs. In fact, it’s causing budget deficits and credit downgrades.
Kansas is among the states facing a massive loss of revenue since Republican Gov. Brownback decided to give away the store, as far as tax cuts are concerned. On Wednesday, the Kansas Department of Revenue announced that the state has lost $92.9 million so far, and it could get worse as the year progresses.
Due to Brownback’s poor financial plan, Moody’s Investor Service has downgraded the state’s bond credit rating, citing it’s lackluster economic future.
The tax cut giveaways of Republican Gov. Chris Christie haven’t gone any better in New Jersey.
Christie’s spending without enough revenue has taken the state into an $807 million hole, causing Fitch Ratings and Moody’s Investor service to cut the bond rating of New Jersey for the foreseeable future.
Missouri faces similar self-inflicted economic wounds if the Republican-controlled state legislature has its way with Senate Bill 509. Gov. Nixon, a Democrat, has warned against implementing irresponsible tax cuts, but the GOP majority has the numbers to overturn a veto.
In a statement on his website, Gov. Nixon notes that, “Missouri has a perfect AAA credit rating from all three leading credit rating agencies – Moody’s, Fitch Ratings and Standard & Poor’s. Because of this spotless record, school districts and local governments pay a lower interest rate on bonds issued. If Missouri were to be downgraded like Kansas, this interest rate would increase for future bond projects, resulting in hundreds of millions of dollars in additional interest payments.”
There is a pattern emerging here and it’s not one Republicans, or any fiscally responsible lawmaker should be proud of. Deliberately causing deficits for the sake of ideological purity is reckless, dangerous, and completely irresponsible. It’s like shooting yourself in the brain just to prove that you support gun ownership.
While most people would prefer not paying taxes, unless Americans plan to go back to living in caves without electricity, roads, schools, national defense, and a whole host of other government functions, taxes have to be paid. So-called small government Republicans need to remember that, before they literally un-tax this country into oblivion so millionaires can get a free ride.
Author’s note: The opinions and commentary included in this report are based on the author’s original reporting and independent analysis of official documents and public information.
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