Revenge and economics in the Show-Me state
(KPLR) – In Monday’s Jacology, Charles Jaco looks at revenge and bad economics.
On this fifth anniversary of the start of the great recession and the crash of Lehman Brothers, we figured it’s a good time to look at bad economic policy. And where else to start but the Show-Me state? Missouri will not have to suffer through massive service cuts and potentially disastrous reductions in money for your public schools. That’s because the Missouri legislature refused to override Governor Jay Nixon’s veto of an income tax cut. 15 republicans in the house joined all the democrats to block the tax cut that would have fattened corporate profits and cost the state between $600 million and a billion dollars every year. And now, the economic extremists who pushed for the tax cut want revenge.
Every republican who voted against the bad tax bill should be voted out of office, said several local right wing radio hosts, every republican who voted against the huge cuts in state services may find their committee assignments or committee chairmanships in danger, said Missouri House Speaker Tim Jones. They want revenge because 15 house republicans did the responsible grown-up thing. They voted against the tax cut.
The problem was always the math. None of the tax cut supporters could say where in the state budget the $600 million to one billion dollars in cuts should come from. We don’t need to cut, they chirped. Cutting taxes will increase tax revenue. That magical thinking was their entire argument. They said Kansas just cut its income taxes. They couldn’t explain the math behind Kansas losing $50 million dollars in income tax revenues in just one month, because of the tax cuts.
The tax cuts they’ve rejected in Missouri would have caused state school districts to lay off teachers and cut classes. But some of the tax cut supporters were never fans of public schools anyway. Government schools they call them. Some had always supported school vouchers and other so-called reforms that would have hurt public schools. So they’re supporting a tax cut that would have hurt schools may not be any big surprise. But they seem surprised that they lost.
I’m Charles Jacoand that’s Jacology.