Issues, Tax

Liberal Assault on Kansas Tax Cuts A Dismal Failure

1

After Kansas Governor Sam Brownback signed an income tax cut in 2012, the New York Times and the rest of the left-wing media proclaimed economic disaster for Kansas.

Kansas’ Ruinious Tax Cuts thundered the Grey Lady’s editorial board from their mansions in Manhattan (New York not Kansas).

Well, Kansas and tax cuts are having the last laugh.

Labor Department data show job growth in Kansas tied with Utah as the fastest in the nation in February.

Back in 2012, Brownback cut the highest income-tax rate from 6.4% to 4.8% with the goal of eventually eliminating the state income tax entirely. The tax on small business income was zeroed out. It was denounced as “trickle-down economics,” though the state’s unemployment rate is now down to 4.5%.

“The number one complaint I’m hearing now,” Brownback tells us, “is we can’t find the workers. That’s a good problem to have.”

Where the jobs are really showing up is on the Kansas side of Kansas City. Because tax rates are lower in Kansas than in Missouri, the Kansas side of the metro area produced twice as many jobs as the Missouri side from 2012 to 2014.

The Kansas Policy Institute ran the numbers and found that “over the last two years — post-tax reform — private-sector jobs increased by 5.6% on the Kansas side of the metro and only 2.2% on the Missouri side.” KPI president Dave Trabert notes: “You can observe firsthand businesses that have moved across the state border into Kansas in the Kansas City area.”

Wages are also growing in Kansas. Before the tax cut, workers on KC’s Kansas side earned 40 cents an hour more than Missouri workers. Now the gap is $3.

Can we call the New York Times editorial board “tax cut deniers,” since they obviously ignore the evidence of economic growth created by lower taxes in favor of their discredited socialist high tax ideology?

 

  • usmcltc

    I wonder what the tax and spend liberals have to say about this. Nothing, I would guess.

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