Tuesday, August 12, 2014
SEC Charges State Of Kansas With Security Fraud
The SEC found that Kansas issued bonds to investors without disclosing material information about its unfunded pension liability. This is the second blow to the states finances. Moody's downgraded its debt because of large budget deficit that resulted from tax cuts. The governor sold the tax cuts to the legislature by arguing that the tax cuts would increase tax revenues by stimulating economic growth. The Kansas economy shrunk after the tax cuts instead of growing. Ronald Reagan made the same argument that the governor made during his administration with the same result. This is a zombie idea that conservatives can not give up.