Kansas’s ravaged economy a cautionary tale as Trump plans huge tax cuts for rich

Source: Dominic Rushe, The Guardian, December 10, 2017
 
Is Donald Trump about to turn America into Kansas? It’s a question some worried people who live in the state are asking as the Republican party pushes through the biggest tax overhaul in a generation – an overhaul that, they claim, bears an uncanny resemblance to a tax plan that left their midwestern home in disarray. After a failed economic experiment meant to boost economic growth blew a hole in the Kansas budget as big as a prairie sky (a $350m deficit in the current fiscal year and nearly $600m in the next) state jobs and services have been slashed.

… Sarah LaFrenz Falk, president of the Kansas Organization of State Employees ,who recently spoke to Congress about her fears about the Republican tax plan, said she sees an agenda in the Brownback plan – one that is mirrored in Trump’s plan: give huge tax breaks to super-rich donors [the rightwing, union-bashing Koch brothers are Kansas’s richest residents], then hand them a second win by cutting services, waiting for those services to buckle under the strain and then argue the private sector can do it better. … Kansas has already had one horrific example of private enterprise failure. In October lawmakers were “flabbergasted” to learn that the companies that now run Kansan foster homes had “lost” more than 70 children. Revelations about the unaccounted children came after it was revealed children had been left to sleep in local contractors’ offices because there were no places for them. The state is currently looking to privatise its largest prison, at Lansing, near Kansas City. CoreCivic, the company overseeing construction of the new prison, is subject to lawsuits in six states and was accused by state officials of grossly under-staffing facilities in Tennessee. …

… The details of Trump’s tax plan are still being worked out, but it looks certain to pass, and the fixed positions are big corporate tax breaks and a massive reduction for pass-through entities. … The bill looks set to add $1tn to the national debt. Republicans are already discussing paying for the plan by cutting social security and gutting Medicare and Medicaid, the two federally funded health insurance schemes. But, worryingly for Trump, Brownback’s tax plan proved not just disastrous for the state but also for Brownback and his supporters. … Brownback’s plan led to electoral defeat for his supporters in 2016, and the election of moderate Republicans he had fought with to pass his plan. His political career is now in limbo. …