The Sunflower State’s Momentarily Embarrassing Moment in the Sun

The national media usually pay no attention to what’s going on in Kansas, which is fine by most Kansans, but they have taken notice of the state’s recent budget problems. Our state government’s revenue collections are once again short of projections, this time around by $350 million or so, and although the sum must seem quaint to a New York or Washington newspaper editor they can’t resist the angle of a cautionary tale about Republicans and their crazy economic schemes out here on the prairie.
There’s no denying the angle has some validity, and the hook for the latest stories is that even the Republican-dominated legislature came up just three votes short of overriding a Republican governor’s veto of tax hike bill, which is the sort of internecine Republican squabbling that always draws national media to even the most remote portions of the country. Although it pains our old-fashioned Kansas Republican souls to admit, there’s also no denying that all that tax-cutting that started about six years ago has not yet kept all the extravagant promises that were made. Even after six years there’s still a plausible argument to be made for patience, and the dismal science of economics cannot prove for certain that higher taxes would have proved a boon to the Kansas economy, and we can think of some tax-and-spend states that also have newsworthy budget problems, but for now there’s no denying the $350 million shortfall or any of the fun the press is having with it.
The tax cuts are the creation of our ultra-Republican Gov. Sam Brownback, who of course has long been hated by Democrats everywhere since his days in the United States Senate for his unapologetic anti-abortion and pro-free market beliefs. Although he has a bachelor’s degree from Kansas State University’s world-class agricultural economics department and a law degree from the University of Kansas and is married into the family that owned the newspaper chain that owned The Topeka Capitol-Journal and served in the United States Senate and has been in politics since he became national president of the Future Farmers of America and the KSU student council, Brownback is still considered an anti-establishment type, so he’s also been a controversial figure even within his own party. Starting with all those high-minded New England abolitionists who poured into the state for the Bleeding Kansas battles that presaged the Civil War, the Kansas Republican Party has always been the establishment around here and long fended off the scruffier sorts of populists. Even with the help of the Emporia Gazette’s great William Allen White they had to resort to firearms to expel the Prairie Populists who gained a brief majority in the statehouse on a program of nationalizing everything and coining endless free silver and all sorts of other craziness, and they only kept the notorious quack and shrewd showman “Doc” Brinkley from becoming governor by not counting all the misspelled or imprecise write-in votes that were cast, but for the most part they’ve kept a steady course down the middle of the road over the many years, and at first they balked at Brownback’s admittedly radical fiscal policies.
Despite the intra-party resisters and their unified allies among the Democratic minority Brownback got most of what he wanted, and then he egged on the anti-establishment sentiment that was taking hold among Republicans in every state, and saw many of his longterm Republican adversaries ousted from office by more hard-core primary challengers, and then he got the rest of it. It was all very acrimonious and much mud was slung and it was not at all the sort of thing that Kansas Republicans like, and the Democrats everywhere greatly enjoyed it until the saw which side had won, and of course it didn’t end there. With like-minded Republicans firmly in control of both sides of the capitol building Brownback surely knew he would be due all the credit or blame that might accrue in the aftermath of his policies, and at the moment that’s a $350 million shortfall.
The notion that lower taxes are more conducive to economic activity than higher taxes has long been generally accepted by all sorts of Republicans, from the country clubs to the union halls, and although you might not find it in Kansas at the moment there is plenty of evidence to support that notion. The doubling of federal revenues that followed Reagan’s admittedly radical tax cuts is one example, and despite our doubts about this Trump fellow he might yet provide more proof. We can hardly blame those back east newspapers focusing their attention on Kansas, and we’ll give them some credit for acknowledging deep into their stories that it’s all very complicated. There are any number of reasons why the Kansas economy hasn’t outpaced even the sluggish growth of the nation at large over the past six years, many of which can plausibly be blamed on the policies of the D.C. Democrats and the eight years of Democratic governors who preceded Brownback, one of whom was that Kathleen Sibelius woman who got kicked out of the Obama administration for bungling the the Obamacare rollout, and the dismal science of economics being what it is there’s always that very real possibility things could have been worse.
There’s also an argument to be made that Kansas had the right idea but went about it the wrong way. Tax policy is mind-numbingly arcane, and all the newspapers in the state are pretty much broke and nobody’s paying us to wade through all that stuff anymore, but so far as we can tell the bill that Brownback vetoed would have rescinded a previous measure that nearly eliminated taxes on income from certain legal entities used by small businesses, which is apparently known as “pass-through income.” This sounds like the sort of pro-Mom-and-Pop policy that every variety of Republican can support, but apparently some 330,000 Kansas businesses started passing all their income through those certain legal entities, and in a state of only 2.5 million people that’s a lot of Moms and Pops and probably enough to make a dent in a $350 million shortfall, and apparently that particular lower tax rate does yield to the usually reliable Laffer Curve.
After the first couple of shortfalls happened the establishment sorts of Republicans started winning primary challenges against the newly-minted anti-establishment types, and the paleolithic Sen. Pat Roberts won re-election despite an anti-establishment challenger that all the talk radio hosts loved, Brownback won re-election against one of those crazy tax-and-spend Democrats by a slighter margin, and the Kansas Republican party largely returned to its stodgy budget-balancing and non-boat-rocking ways. With help from the unified Democrats it came within three votes in the Senate from overriding the veto, and when everything’s up for grabs in Kansas’ off-year elections two years hence we won’t be betting on that pass-through exemption lasting long. The first rounds of shortfalls were met with spending cuts, which struck us as entirely reasonable after eight years of spendthrift Democratic administrations, but there are roads to be paved and bridges to be buttressed and kids to be educated in the state, and the biggest chunk of the state budget is obligated by the feds, so after the first few rounds of plucking there got be some squawking in even in the most Republican precincts. We read there’s a similar exemption included in the much speculated-about tax proposals from President Donald Trump, who won the state’s electoral votes just like every Republican does but finished a dismal third in the state’s Republican caucus, and we wonder how many Grand Old Party establishment types will be around to raise any objections to that.
We really don’t want to be ragging on Sam, as we call him, because we do like the guy. It’s an annoying stereotype about Kansans that we’re all supposed to know one another, but we have known Brownback since our teenaged days as interns with the famously Kansas Republican Sen. Bob Dole, and we’d run into him on the KSU campus where he was king and the Kansas State Fairs that he ran as Kansas Agricultural Commissioner and along his endless campaign stops, and we’ve always known him to be a very nice guy with a good enough sense of humor that he got our jokes. We also remain steadfast in our old-fashioned Kansas Republican belief that lower taxes are indeed generally more conducive to economic activity than higher ones, but we’re the old-fashioned sort of Kansas Republican who would prefer to get things right enough to balance the budget. Tax policy is arcane stuff, but if you delve deep enough into you’ll find that some tax cuts are better than others, and that sensible policies elsewhere would make it all less important, and that it’s all very complicated, and sometimes you have to pay at the bottom line. We rather like that some stodgy budget-balancing Republicanism is still afoot in the country, too, and hope that the old adage about lower taxes and economic activity will survive. May God have mercy on our souls, but we also hope they can work something out with those damned Democrats.

— Bud Norman

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