The state of California made some headlines last week when the latest economic data found that the Golden States economy is now the sixth largest on the planet, passing France and Brazil. It was a striking milestone just in terms of Californias sheer economic might.
But there was something else about the news with some political salience: when California raised taxes on the wealthy in 2012, creating one of the highest marginal tax rates in the country, conservatives were certain the states economy would take a severe hit. Howd that work out? The Washington Post reported the other day:
California grew just fine in the year the tax hikes took effect Californias economy grew by 4.1 percent in 2015, according to new numbers from the Bureau of Economic Analysis, tying it with Oregon for the fastest state growth of the year. That was up from 3.1 percent growth for the Golden State in 2014, which was near the top of the national pack.
At the same time, Kansas Gov. Sam Brownback (R) slashed taxes, leading conservatives to predict great things for the states economy. And yet, here we are.
The Kansas economy, on the other hand, grew 0.2 percent in 2015. Thats down from 1.2 percent in 2014, and below neighboring states such as Nebraska (2.1 percent) and Missouri (1.2 percent). Kansas ended the year with two consecutive quarters of negative growth a shrinking economy. By a common definition of the term, the state entered 2016 in recession. [ ]
Kansass gross domestic product is still less than it was at the end of 2011, said Menzie Chinn, an economist at the University of Wisconsin-Madison, who has been following Kansass economy. Meanwhile, the economy in the rest of the country continues to expand.
http://www.msnbc.com/rachel-maddow-...r-california-raised-taxes-and-kansas-cut-them
Looks like we have a few more data points to add to nearly a hundred years of history showing that just because the job creators have more money doesn't mean they'll spend said money to job create.