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Calling all Wichitans! Want to pay higher sales taxes to fund, amongst other things, street paving and bus transit? Learn more about the proposal this Thursday at WSU Metroplex. Free and open to the public. Please register here: http://kansaspolicy.org/events/121100.aspx?view=c


Moving Wichitans in the Future: Paving and Transit Via Sales Tax?
www.kansaspolicy.org
A review of the paving and transit portions of the proposed 1% sales tax in the City of Wichita.
Tue, 21 Oct 2014 20:30:40 +0000
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Is a new tax in City of Wichita- Government the right way to maintain streets and provide bus transit? What are some other possible solutions to the problem? 23 October event to learn more. http://www.kansas.com/news/politics-government/election/article2906173.html RSVP in first comment.


KPI to host forum on transit and street maintenance components of sales tax referendum
www.kansas.com
The Kansas Policy Institute, a conservative Wichita nonprofit organization, is hosting its final community forum on the components of the upcoming sales tax referendum.
Thu, 16 Oct 2014 15:13:54 +0000
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How will the upcoming elections impact Freedom in America and Kansas? Hear Scott Rasmussen's thoughts and predictions at the KPI annual dinner on October 28 in Wichita. Register today at www.KansasPolicy.org/Rasmussen2014


2014 Elections and America's Future
www.kansaspolicy.org
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Wed, 15 Oct 2014 14:47:50 +0000
Last Refreshed 10/24/2014 5:10:54 PM
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Tax Myth Debunked: Gov't Spending Stimulates the Economy During Recessions
Posted by Todd Davidson on Wednesday, February 06, 2013
Tax Myths Debunked, a rigorous study by economists Dr. Randall Pozdena and Dr. Eric Fruits, was published by the American Legislative Exchange Council (ALEC) today.  The report takes a deep theoretical and empirical dive into both state and national tax policy debunking several myths along the way.

Myth number one is the notion that “increased government spending stimulates the economy during recessions.”  Messrs Pozdena and Fruits review the academic literature in order to debunk this common myth.  At the national level they find:

A large and long-standing body of literature finds that increased or higher government spending tends to reduce economic growth rather than increase it. This negative relationship between prior levels of high spending and growth is apparent in the data from developed nations (See Figure 3). 

Looking at the state level a similar conclusion is found; higher government spending correlates with slower economic growth:

Studies comparing the growth rates of various states with different levels of public sector spending also fail to identify consistent evidence that demonstrates how public spending increases a state’s rate of economic growth. This is particularly the case when the spending is on transfer payments, but it is ambiguous even when spending is on more productive items, such as education, health and infrastructure. 

Figure 4 shows that states that have a history of high rates of total government spending growth (per dollar of Gross State Product [GSP]) subsequently display much lower rates of GDP growth. This is suggestive of a causal relationship between fiscal profligacy and subsequent slow growth.
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