Trump wants a pass-through tax cut. It was a disaster in Kansas.

One of the key offerings of the Republican tax plan: reducing the tax rate for pass-through businesses. It's a move they say will boost small businesses and create jobs. One state tried it recently, and the result was an economic and political fiasco.

[peteradaniel]

This is hilarious. I have never seen a government work to try to create an actual underclass like that of the US. Well done freedom loving USA.

[nickl]

The error is the assumption that businesses are job creators. They aren't. Businesses only create more job when they make more money. And businesses only make more money if the demand for their product increases.

If a business has more money but see no increase in demand for their goods and service, they will not hire more people (ie grow the business). The amount of work they do is the same. They might do one off things like update old equipment. But by and large a prudent small business owner will put that extra profits into a rainy day fund.

In effect the Republicans are cranking the wrong side of the engine. What they should have done is cut the income tax of residence. Now people have more money, and they will go out and buy stuff. Business see more business and will grow.

The error here is one of understanding human nature. You, a business owner, have more profit due to paying less taxes. However you see no increase in customer volume. You are selling no more than before the tax cut. You have the same number of customers you see every month. What do you do? Hire more people? Why do that? More workers won't increase the number customer you have. You are not turning any customers away. You do not have a problem of not enough workers. It is a problem of getting more customers. And there aren't more customers because people in general do not have more money. (Business owner is not a common profession)

You could pay your workers more money to do the same work they did before the tax cut. Better paid workers could be customers of both your business and other business. But that is never going to happen, because it requires all business owners paying their workers more. Any business owner who cheats, gets the rewards of more customers without paying workers more.

What really happens, is business owners just keep the extra profit. And the extra money.. for the most part is saved. Saved for a rainy day, and saved because a well to do individual can only eat so many burgers a day, buy so many cars etc. Saved money is not as productive as invested money. And money in banks can travel very far, out of the nation even.

[mrheimdall]

Donald Trump is feeding
America to the filthy rich.
Homelessness is an epidemic.
Minimum wage is a stab in the back.
War Veterans are committing suicide.
Medicine and healthcare are the
highest on the planet.
Infrastructures are crumbling.
Rents are astronomical.
The rich are getting richer
while the rest of us struggle
to make ends meet.

This is making America Great
Again?

[stephenball]

What this gentleman left out is the damage inflicted on State employees, or the multiple methods the State Government levied new taxes on the working class...
He also did not mention ANY of the cuts in State programs that benefited the elderly, children, or the desperately needy!
Trickle down economics do not work!
If you want a thriving economy, the bottom 95% NEED to be earning enough income that they have excess income to be able to purchase goods over & above the absolute necessities!

[Estoooopid]

Id rather pay taxes and know thousands of people are recirculating that money via government employees. Rather then having corporations rule the land and have my money go to 4-5 rich greedy persons.

[CCJJChannels]

Cut taxes and the loss of revenue will be made up for by growth? Hmmm . . . why does that sound so familiar?

[MyChilepepper]

Capitalism is socialism for the rich. Lol

[RyanJohnson]

We're all going to be like Kansas soon.

[EricJansson]

One of the major things that messed up Kansas economy is in Wichita when Boeing left Kansas it created this huge void in our economy it is the equivalent of when auto manufacturers left Detroit so a lot of things suffered because of this.

[NUCLEARARMAMENT]

The maximum marginal tax bracket is 39.6% for individual filers (whose income exceeds that of $500, 000 per year) of passthrough entities at the federal level for the income tax.

I heard that if this new GOP tax bill proposal goes into effect, the maximum marginal tax bracket will be reduced from 39.6% to 25% for individual- and joint-filers making above $500, 000 and $1, 000, 000 a year, respectively; is this accurate?

[matthewchristensen]

The problem with KS government is like anywhere else - THEY SPEND TOO MUCH. This isn't a revenue problem but a SPENDING PROBLEM.

[DaveyJonesJr]

The growth forecast is long term and absolutely works.

[killersushi]

*In case people don't know....Kansas is doing great right now. XD*

[firekram]

So what I'm hearing is we should get rid of a personal income tax altogether and just tax everything on a corporate level.

That sounds fair to me.

[emrys]

Oh no we cant let people keep their own money its like feeding the devil.

[abdulghanibinothman]

The oil is in great fear with fangtech now.

[ericd]

There is a huge difference between a head coach and a business owner who produces something and hires workers. Just because the Kansas law didn't work out, they were on the right track. Making government less parasitic is always a good thing.

[nancymesek]

Unfortunately, It wasn’t a political disaster because the state is still red.

[harryhightower]

so all a pass thu is:"is a legal money laundering scam".

[thatcoolkidjoey]

You guys should come down to Southern Kansas and see all the road construction and new buildings being built and all the jobs created it actually is really nice here in Kansas right now