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We'll Tuesday -- tackling their economic problems in two very different ways.
Merrill and decided to raise taxes.
On high income earners -- Kansas has taken the opposite.
Kansas is eliminating a budget surplus for 2013 the governor there decided to lower income tax rates for everybody across the board.
Making it the state with the fourth lowest income tax rate in the nation so we're joined now by Jeff -- He is lieutenant governor of Kansas lieutenant governor welcome good to have you here this morning.
Good morning -- you know -- you've really got the two schools of thought at play here when you look at Maryland and look at Kansas.
As very similar to the national debate that's going on right now.
The president wants to increase taxes on high wage earners in this country.
Romney governor Ronnie says that that's not the way he would Gao tell us in -- -- a little bit about your success story Kansas and why you think lowering taxes has been the key to your success.
Out when governor Brownback and -- came into office eighteen months ago we had a 500 million dollar deficit.
We've been losing jobs over the last decade actually losing population to other states.
And we just couldn't do that we were the highest tax state sit in many states around us.
And so we just couldn't do that anymore we were losing private sector jobs.
-- so what we've done is we've made approach of let's work with business let's work with small businesses so were cutting taxes.
On all small businesses if -- an LLC or sub -- asking if you come to Kansas zero income tax.
And so we're building jobs here and then we cut taxes across the board for all income levels.
Instead of a three and a half percent income tax rate for a very -- -- we cut it down to three and we're cutting tax rates across the board for every -- Yet you know -- -- -- over to Maryland where governor O'Malley.
Claims that you know his route to stability for his state is gonna be completely different.
He does not want to see any of their services cut he feels that their education system is a draw for people to Maryland so he wants to preserve.
The spending levels in that area and in order to do that he has raised taxes right.
Well that's what I understand Maryland's doing but we're focusing on how we can fix things for us.
And let me give you an example were just trying to focus on the core services of government.
So for example we added forty million dollars to public schools here in the state of Kansas.
We're concerned about kids' educations and we're focusing on.
Getting the best outcomes for kids we're making sure that we have great roads were even reforming our Medicaid programs so that it will help save money.
And get better -- -- -- basically you know -- cut taxes how have you been able to cut taxes.
And preserve things like funding for your schools how -- you do it.
Yeah how how we did it is when we came into office we had a 500 million dollar deficit.
And we've cut that we have a 500 million dollar surplus and we -- basic blocking and tackling and -- give an example AM medicate for example.
Come in Medicaid are Medicaid program was in disarray scatter across four different cabinet agencies.
And grow from 2.4 billion to three billion and in just a couple of years.
What we've done is we just signed the deal last week where we're going to make sure that everybody keeps their doctor and that -- You know pay rates don't go down and that also we're going to make sure everyone is covered instill us access.
And guess what we're actually gonna save a billion dollars it we're gonna have additional coverage for people.
And so the main reason that you're finding you found efficiencies in your Medicare system it sounds like.
And it also sounds like you detected a lot of overlap because -- had four different agencies say you've eliminated a lot of bureaucracy.
And streamline the way that Medicare functions and ended up saving and of a lot of money it -- -- Yeah absolutely you just gotta do this better -- what our goal was to focus on health outcomes for example.
We're doing the same thing in schools and roads what we want -- matures we're gonna have a great place for you to have a family.
Make sure that you've got good place for schools your health care -- of the roads are great.
Were right in the middle of the United States we even have Google fiber building the fastest fiber optic network in the United States here.
Fascinating story I'll -- governor -- thank you very much for coming not good to speak with you today good -- she'll.
Yeah every break come to Kansas.
That you're not in Kansas anymore we're not in Kansas anymore but you are we'll see.
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