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Sinquefield Economic Fantasy vs. Reality

Rex Sinquefield admires the work of Kansas Governor Sam Brownback, that much is clear. What's not so obvious is why. Standard & Poor's just downgraded Kansas' credit rating from AA+ to AA. Back in May, Moody's Investment Service downgraded the state's credit rating as well, from Aa1 to Aa2. Both ratings agencies cited Governor Brownback's massive income tax cuts as a factor in the decision. As more evidence of the fiscally precarious situation in KS emerges, Rex Sinquefield continues to laud and promote Brownback's failing policies.

Sinquefield's Economic Fantasy #1:

“Just one year later, a close look at the data backs up the economic projections of Brownback’s visionary leadership. Lower income tax rates have in fact stimulated the economy by reducing the price both of work and conducting business in the state, not to mention that lower rates have predictably proven effective when it comes to luring out-of-state businesses to Kansas’ friendlier business environment.” -10/04/2013

Reality:

Plummeting revenues, underfunded pensions and millions in court-ordered school spending led Moody’s Investors Service on Thursday to cut the state’s credit rating by a notch. -5/01/2014

Sinquefield's Economic Fantasy #2:

“The Show-Me-State now has real data, made available from our neighbor to the west, which can be used as a reference this coming legislative session. It’s now up to Missourians to create the best tax policy for our own state’s economic growth.” -10/04/2013

Reality:

“The negative outlook reflects our belief that there will be additional budget pressure as income tax cuts scheduled in future years go into effect, or if midyear revenue shortfalls resume.” -S&P credit analyst David Hitchcock 8/06/2014

Sinquefield's Economic Fantasy #3:

"As leaders in other states develop their own approaches to pro-growth tax policy, they would be wise to consider the facts and not be influenced by the premature and uninformed claims of their opponents. While it is true that everyone is entitled to their own opinions, they are not entitled to their own set of facts." -7/11/2014

Reality:

Standard & Poor's Ratings cut the credit score for Kansas to AA from AA+ on Wednesday in another blow to the deep income tax cuts championed by Republican Governor Sam Brownback, who is struggling to keep his post in upcoming elections. In a report explaining the downgrade, S&P said the Kansas budget is not structurally balanced and described a fiscal situation with very little breathing room. -8/06/2014

In other fun news, Brownback won the August 5th Republican primary election in KS with a mere 63% of the vote. For an incumbent, that's downright embarrassing.