Quite possibly the least ideological—and least sexy—publication in North America is the “Purchasing Economy Survey Report” produced by Creighton University…
Now unless some deep operative from the Sam Brownback administration bought the editors’ cooperation with promises of new farm implements, one can relay their findings with some degree of confidence.
The headline of this October 2014 story reads, “Kansas Cuts Taxes and Expands the Economy: Earnings Growth Soars Past U.S. and Neighbors Since Passage.”
According to the report, in 2012 Kansas Governor Brownback cut individual tax rates by 25 percent, repealed the tax on sole proprietorships, and increased the standard deduction. In 2013, the state legislature cut taxes again.
“How has the Kansas economy responded to these dramatic tax cuts?” ask the editors.
Well, since the fourth quarter of 2012, “Kansas grew its personal income by 2.92% which was higher than the U.S. gain of 2.85%, and was greater than the growth experienced by each state bordering Kansas, except Colorado.”
That is not all.
“In terms of average weekly earnings, Kansas experienced an increase of 4.82% which was almost four times that of the U.S., more than four times that of Missouri, approximately seven times that of Nebraska, and nearly four times that of Oklahoma.”
Although most surrounding states experienced higher job growth than Kansas, there was a reason why: “Much of Kansas’ lower job growth can be explained by the fact that during this period, Kansas reduced state and local government jobs by 1.4% while all of Kansas’ neighbors and the combined 50 U.S. states increased state and local government employment.”
In regard to joblessness, the Kansas August 2014 rate was 4.9 percent compared to rates of 6.1 percent for the U.S. as a whole and 6.3 percent for Missouri.
According to the report, since the tax cut, “except for Colorado, the state economy has outperformed, by a wide margin, that of each of its neighbors and the U.S.”
Conclude the editors, “To remain competitive, expect Kansas’ neighbors to reduce state and local taxes in the years ahead.”
Good heavens, no!
Of course, it is possible that if the Kansas City Star and other media continue their mindless pounding, investors will lose confidence in the state’s long-range prospects and choose to go elsewhere.
If so, Kansas voters just might throw out the Republicans, revert to the over-taxed, negative growth status Kansas enjoyed during the Kathleen Sebelius years, and make the state safe again for the late term abortion industry, the economic powerhouse of the pre-Brownback era.
Rich Steele is a citizen journalist and head of the NSAAS (Non-Smokers Against Anti-Smoking).
do you not see the mess we’re now in….did you see the cuts….did you see the
responses….maybe you need eyeglasses
No, I don’t see sky falling. I don’t see a mess either. I see some growing pains. But even then they are actually not as bad as I expected.
Since that Creighton report was published, in which Kansas was ranked #1 in the region for September, Kansas was #2 in October and #1 in November and December. Not that anyone would know it from reading local media.
Well, Rich, you clearly have displayed an ability to make lemonade out of lemons.
Pretty obvious that lower taxes will result in a bigger number on one’s paycheck. No one can question your acuity in math. The problem is that Brownback promised that more money in the pockets of citizens would result in increased spending and more money in the bank accounts of companies would result in increased hiring and that in turn would result in more money flowing into state coffers. Oops, that’s where the fantasy met the reality. Thought we had proved that trickle down economics doesn’t work but, I guess not here in the Land of Oz.
I think the investors you refer to are more likely to base any decision on the long range prospects in Kansas, less on the pronouncements of the KC Star and more on the S&P downgrading on Kansas bond ratings.
Just sayin’
Oh stompy, don’t disparage the wonders of trickle-down economics. Just think of the yellow water-substance being rained down on you as liquid gold from rich people’s heaven.
🙂
If only brownie lived his own life according to the bible….paid attention in
economics class…..showed some class in dealing with people…..didn’t have a
heart filled with hate….understood numbers and accounting…then he
migh be an okay guy. Til then he’s a pos!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Just don’t be gay or BT in der guv Brownshirt’s Sasnakistan!
If ur feeling benevolent ur more than welcome to donate your money to the poor thru tax’s in sum other state. I’ll just keep my earned income and write a check on Sunday if I feel charitable. In the meantime I’ll enjoy my great police fire water road and school services here in sojoco.
Put up or shut up. You probably don’t care cause you don’t have to pay taxes getting a fat refund off the backs of real men. You kno the ones that create wealth even with you leeches trying to live off our tests.
blind man…I SURE AS HELL WISH I GOT A TAX REFUND!!!!
that would make april 15 a great great day.
Kansans are going to need more $ in their wallets and purses after taxes to pay for those new athletic dorms at KU. You don’t expect the Athletic Department to pick up the tab for that, do you? It only comes through with $ for overpaid coaches such as Self. Speaking of Self, note to self: don’t leave any $ to KU when you die. Don’t leave any $ to KU when you die. Don’t leave any $ to KU when you die.