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New Thumbtack Survey Shows Kansas Business Owners Feeling Increasingly Positive about State Business Climate. http://bit.ly/1IPMQ0L


New Survey Shows Kansas Business Owners Feeling Increasingly Positive about State Business Climate
www.kansaspolicy.org
Thumbtack.com has begun tapping its nationwide network of independent service providers and contractors to build a monthly survey—released for the first time Tuesday—tracking economic outlook sentiments and unique market challenges small business own
Sat, 23 May 2015 02:00:01 +0000
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You're telling me the "Better Service, Better Price" thing has actually been implemented - AND WORKED - in a state! https://www.youtube.com/watch?t=1812&v=RGg6w5jA_Tg


Mitch Daniels on How to Cut Government & Improve Services

Former Indiana Gov. Mitch Daniels served in office from 2005 to 2013 and in eight short years accomplished more than most politicians manage in a lifetime. H...
Fri, 22 May 2015 18:04:35 +0000
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Kansas Center for Economic Growth misleads on job growth...again! http://bit.ly/1HzFfDn


KCEG misleads on job growth – again
www.kansaspolicy.org
The latest misleading claim on job growth from the Kansas Center for Economic Growth is loaded with misleading and irrelevant information; they don’t fully disclose their methodology and at this writing they have ignored our request to explain it.&am
Fri, 22 May 2015 18:00:01 +0000
Last Refreshed 5/30/2015 4:05:47 PM
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Debunking CBPP on tax reform and school funding - Part 4
Posted by Dave Trabert on Saturday, May 17, 2014

We continue our debunking of the Center on Budget and Policy Priorities (CBPP) latest report entitled "Lessons for Other States from Kansas' Massive Tax Cuts."  Part 1 dealt with state revenues. Part 2 covered state spending in general and school funding in particular.  Part 3 addressed claims that that tax reform hasn't boosted the economy.  Today we tackle their assertion that tax cuts won’t lead to economic growth.

CBPP claim #4 - Little Evidence to Suggest That Tax Cuts Will Improve Kansas’ Economy in the Future

Actually, there is a lot of evidence; CBPP just conveniently avoids it.  Instead, they substitute their opinion and employ their standard tactic of making claims without disclosing supporting data; they also reference predictions that Kansas will trail the nation next year in some economic indicators.

We’ll start the debunking with a brief history lesson.  Private sector job growth in Kansas trailed the national average in ten of the last fifteen years (1998-2013).  Kansas’ private sector gross domestic product trailed eight times (1997-2012) and personal income trailed eleven of the last fifteen years (1998-2013).  Indeed, Kanas’ history of economic stagnation was the impetus for tax reform.   As we explained in Part 3, the full economic impact of tax reform will take years to unfold.  It’s intellectually dishonest of CBPP to imply that tax reform isn’t working because a long term negative trend hasn’t suddenly created tremendous gains.

Now let’s look at the evidence.  The adjacent table compares the performance of the ten states with the lowest state and local tax burdens with the ten states with the highest burdens, based on the most recent rankings from the Tax Foundation.  The low-burden states are Wyoming, Alaska, South Dakota, Texas, Louisiana, Tennessee, New Hampshire, Nevada, South Carolina and Alabama.  The high-burden states are New York, New Jersey, Connecticut, California, Wisconsin, Minnesota, Maryland, Rhode Island, Vermont and Pennsylvania.

The low-burden states increased jobs at twice the rate of high-burden states.  Low-burden states have superior growth in Wages & Salaries and Private Sector Gross Domestic Product.  Low-burden states have positive domestic migration while high-burden states have negative domestic migration.  In other words, US residents are choosing to move to low-burden states and choosing to leave high-burden states. 

 

Tax reform critics like to attribute the superior economic performance of low-burden states to weather and access to ports and natural resources.  But you’ll notice that both groups have states with good weather, bad weather, coastal, land-locked and natural resources.  But there is one category which really separates the two groups of states – spending.  High-burden states spend 40 percent more per-resident to provide the same basket of essential services.  States with an income tax spend 49 percent more than those without an income tax. 

The key to having low taxes is to keep spending under control by providing services at a better price.  A state could be awash in oil revenue and still have a high tax burden if it spent more.  Texas, by the way, gets less than 3 percent of revenue from oil; they have a low tax burden because they only spent $2,293 per-resident to provide the same basic basket of services on which Kansas spent $3,409 (2012 actual per NASBO).

 

The moral of the story is pretty clear: states that spend less, tax less – and grow more.     

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