Wednesday, June 7, 2017

Democrats And Republicans Will Raise Taxes To Preserve Their Influence

News


Kansas legislators, a body dominated by Republicans, voted to raise taxes by more than a $ 1.5 billion dollars over two years. The rolling back steep tax cuts signed into law by Gov. Sam Brownback in 2012 represents a desperate attempt to extricate the state from a deep fiscal hole. Sound familiar? Illinois, New Jersey, New York, California, and so on.

Outlays relative to receipts, the money spent versus money collected has been declining steadily since 2001 in the United States (chart). Only the computer appears to recognize it, as headlines/experts have been unable to recognize for years. This downtrend, part of larger secular trend that originated in the 30's and paused in 2010, resumed in 2015.

Kansas has just shown us, Democrats or Republicans, it doesn't matter. They're essential two sides of the same coin that will always choose to raise taxes to retain their sphere of influence. The majority of voters, stuck in some Utopian concept of governance, have yet to learn this lesson. They will as their beloved representatives raise taxes or suspend tax cuts as the economy contracts.

Chart


Headline: Legislature overrides Brownback’s veto of bill that rolls back his 2012 tax cuts

The Republican dominated Kansas Legislature that has soured on Gov. Sam Brownback’s vision for the state voted late Tuesday to roll back the governor’s signature tax cuts.

Lawmakers voted to override Brownback’s veto of a tax plan estimated to bring the state more than $1.2 billion over a two-year span.

The Senate vote was 27 to 13, and the House followed by agreeing 88 to 31 to supersede the Republican governor’s wishes on the tax plan and force the changes into law.

Lawmakers marshaled together a coalition of moderate Republicans, conservatives and Democrats to overcome the governor’s opposition to seeing his landmark tax cuts, which have in large part come to define his tenure in Topeka, fundamentally come to an end.


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Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.