Yeah, right… (pun intended)

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You know the story about the dog that caught the car? You don’t? The dog didn’t know what to do once he caught up with the car he was chasing. I

understand this problem. It’s happened to me plenty of times. Like developing the artificial kidney I hoped when I was 8 before I was 20. What was I to do next?

Can Tax Cuts Save the Economy?
Can Tax Cuts Save the Economy? (Photo credit: Mike Licht, NotionsCapital.com)

Well, that’s kind of the position folks in Kansas (and, hopefully, not a lot of other states) are experiencing right now. They got sucked in by the former Senator Sam Brownback, who became the governor of their state. And, promptly sold the citizens a bill of goods. (Oh, you can bet the partnerships, the LLC’s, and the S corporations wanted this, even though they probably knew the catastrophe that would ensue. But, hey, can’t you take a joke?)

You see, in 2012, Kansas decimated the income taxes the state collects . Oh, those of a certain party promised that a plethora of jobs would develop. (The Governor himself actually promised ‘tens of thousands of jobs’.) Just so you know the real facts, Kansas is way behind most of the US in job generation- including the employment rates that obtain in  its neighboring states.

This new tax program made it possible for certain businessmen and women (but not the average employee) to avoid ALL state taxes on self-employment income. Instead of getting a W-2, those who got 1099’s would be absolved from state taxes on that income.

It should not surprise anyone that the state is now short of cash. Really short. So, maybe all those BS artists who keep proclaiming that we can cut taxes and have enough money to pay for the necessities of government will finally shut the heck up.

It probably will take folks like me and you reminding them that we know the real ramifications of these hare-brained schemes. And, we won’t let them pull one over on us.

But, the picture can also become worse.  That same party has been annoyed that the IRS is responsible for enforcing Obamacare.  So, they’ve been starving the IRS of funds.  14% less since 2010- and 11% fewer employees.  Even with a bigger mandate and a larger population.

And, now this same group wants to cut the IRS budget by another 12%.  Like they don’t earn their keep.  After all, the IRS only collect about $ 255 for every $ 1 they spend.   If any American company could get even 1/2 that return, they’d be in heaven- forever.

So, it is just a matter of time before the IRS reports that the cheating rate- which is already too high- doubles.   As I said, yeah right….

 

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