Similar free-for-alls in Oklahoma and Kansas devastated working families.
Following the Governor’s lead, last week the Iowa Senate Republicans proposed a budget-busting tax free-for-all that would cripple Iowa’s economy and make the Reynolds Budget Crisis go from bad to permanent. The Republican plan would provide massive giveaways to the wealthiest Iowans, paid for by working families via deep cuts to education, health care, mental health, and public safety.
There is no doubt that Republicans’ special-interest giveaway will fail to generate economic growth: we’ve seen the same Koch Brothers agenda play out in Kansas and Oklahoma with devastating results.
Based on what happened when Kansas and Oklahoma passed similar tax scams, here’s what Iowa can expect might happen next:
Deep cuts to education.
Oklahoma’s Republican tax scam forced millions of dollars in cuts to public education. As a result, many Oklahoma students now only go to school four days a week — with far bigger class sizes, fewer course options, fewer teachers, and no textbooks.
Kansas schools also moved to four-day weeks after tax giveaways caused a budget crisis. School funding cuts were so deep, especially in rural areas, that the Kansas Supreme Court ultimately ruled them unconstitutional. Meanwhile, college tuition in Kansas jumped by 21 percent.
Canceled investment.
Kansas can’t afford to invest in roads, bridges, and other transportation infrastructure thanks to Republican tax giveaways. The state put dozens of construction projects on hold in 2016 alone, while borrowing more than $1 billion from the Kansas highway fund to plug other budget gaps.
In Oklahoma, state health agencies are about to completely run out of money, and the state’s two medical schools about to lose their accreditation, unless legislators approve across-the-board funding cuts. This comes on top of existing funding cuts so deep that highway patrol officers can’t afford gas and rural hospitals and nursing homes are being forced to close.
Budget crisis.
Despite draining funds for infrastructure, pensions, schools, and health care — and forcing communities to lend money to the state government — Kansas found itself with a $350 million budget deficit last year. The state’s debt load doubled, and its credit rating was downgraded twice. Oklahoma’s bond rating was also downgraded last year due to persistent budget deficits.
Weak job and economic growth.
Thanks to its Republican tax scam, Kansas’ economy lagged far behind other states. Kansas’ gross domestic product grew by only 3.8 percent between 2013 and 2016, roughly half the national rate of 7 percent. Job growth also slowed, with Kansas seeing just a 2.6 percent increase in total employment during that period, compared to 6.5 percent nationally.
Future tax hikes for families.
To make up for tax breaks for the wealthiest, Kansas was forced to increase sales and property taxes — tax hikes that hurt working families the most. But that still wasn’t enough. State legislators, including many Republicans, voted to repeal Kansas’ disastrous tax scam last year. Republicans in Oklahoma are also pushing for tax hikes to undo the damage they’ve caused.
“Governor Reynolds and Iowa Republicans know that their plan will hurt working Iowa, but they’re putting their wealthy donors first. It is clear that their priorities lie, not with the good of Iowans, but with the good of those who will line Republican campaign coffers. We hope they will abandon this incredibly harmful bill in favor of real, bipartisan solutions for middle class and working families,” said Iowa Democratic Party Spokesperson Tess Seger.