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Gov't can provide quality service while saving taxpayers money.


A plan for balancing the Kansas state budget

Kansas Policy Institute President Dave Trabert presents KPI's plan to balance the state's budget without service reductions or tax increases. Trabert spoke a...
Thu, 18 Dec 2014 17:34:52 +0000
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Another reason to watch Seinfeld reruns. Economics lessons taken directly from the "show about nothing." http://yadayadayadaecon.com/clip/67/


The Soup Nazi (The Economics of Seinfeld)
yadayadayadaecon.com
The Soup Nazi makes delicious soup—so good there's always a line outside his shop. He refuses service to Elaine, and by a stroke of luck she comes across his stash of soup recipes. She visits his shop and informs him that his soup monopoly is broken, while waving his recipes in his face. Also in thi…
Wed, 03 Dec 2014 16:15:10 +0000
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Happy Thanksgiving and a hearty huzzah for property rights. https://www.youtube.com/watch?v=66QdQErc8JQ


The Pilgrims and Property Rights: How our ancestors got fat & happy

The Pilgrims founded their colony at Plymouth Plantation in December 1620 and promptly started dying off in droves. As the colony's early governor, William B...
Tue, 25 Nov 2014 16:14:47 +0000
Last Refreshed 12/22/2014 4:05:13 AM
Commentary
Sales Tax About Politics Not Economics Or Education
By: Dave Trabert
December 20, 2011
Word Count: 239

Earlier this month, much was written of State Senator Carolyn McGinn's proposal to end last year's sale tax increase early. The primary justification for that tax increase was to give more money to schools. According to the Kansas Department of Education, state aid to schools went up $94 million last year, from $2.868 billion to $2.962 billion. KSDE also reports that districts' operating carryover cash balance (total less capital and debt) increased by $85 million, from $775 million to $860 million. (Districts also reported $8 million carryover in their Activity funds, which wasn't reported previously).

90% of increased state aid was used to increase cash reserves. The tax increase clearly wasn't needed. Even worse, it cost jobs. Legislators were given two independent academic studies, from KU and WSU that said increasing the sales tax would cost a few thousand private sector jobs, mostly in jobs that wouldn't be created. Sure enough, Kansas has the worse private sector job creation in the country this year and is the only state whose average annual private sector employment (through October) is below its 2010 average.

The sales tax implementation was driven by politics, not sound economic principles. It certainly didn't get to Kansas students as most of it was put into the bank. Sadly, that is too often the case in Kansas and in Washington - politics being put before providing an effective education and allowing more Kansans to find good paying jobs.