Four years ago Kansas eliminated their state income tax and watched the money begin to flow in the tune of $85 Million! It was known as the “the Kansas experiment”!
Kansas also saw a significant employment increase over the last three years by over 4.0%.
As private sector jobs grew by just 2.3% TOTAL, (.02% a year) over the 14 years prior, it is hard to mistake the difference!
Not all of Kanas’ economy is perfect, and the left continues to blame it on the Tax elimination of course, but the state is definitely heading upward!
Unfortunately, those who choose to blame all of Kansas’ economic struggles on the Brownback tax reforms are being willfully disingenuous (at worst) or have an incomplete understanding (at best). Many on the left find it politically expedient to point to Kansas’ “tax problem.” In reality, though, what Kansas has is a spending problem. New revenue estimates released last month show that Kansas tax revenue increased 1.5% in 2015 and is expected to be 2.6% higher than that in 2016. So what’s the problem? Quite simply: revenue cannot keep pace with record-breaking spending that is a full $1.2 billion ahead of the 20-year inflation track. In 2014, Kansas spent 34% more per resident than states without an income tax did.Kansas’ budgets are so woefully bloated that even effective, practical tax reform cannot make the impact it should.
The equation is pretty simple. By eliminating the state income tax, the state became a job magnet! Kansas eliminated the income tax on small businesses and made the state more attractive to business owners.
More business equals more jobs. More money in the pockets of the residents, the more money they can pay into the economy. The less money goes through the waste, fraud and abuse that is prevalent in the public coffers!
Go Kansas! Go Governor Sam Brownback! Kansas has become an illustration of a basic fact: Lower taxes, increase economy!
Take that liberals!
UCLA Professor of Economics Tim Groseclose explains his research on the topic. Basically, there’s a certain point at which higher tax rates actually reduce the amount of revenue the government collects. What’s that point? When are tax rates too high? Learn a valuable lesson in economics, and public policy at PragerU!