The results are in: Historic tax cuts in Kansas are spurring growth – and freedom
11/13/2015 / By usafeaturesmedia
(Freedom.news) For months after Kansas legislators passed historic tax cuts a few years ago, big government leftists breathlessly predicted that they would bankrupt the state. But a new study has found just the opposite is taking place, and it reaffirms once again that tax policies aimed at reducing burdens spurs economic growth instead of economic malaise.
As reported by Forbes, though naysayers continue to refute what is going on in Kansas, the results are speaking for themselves in a stream of good news: According to recently released figures, in 2013 alone more than 10,000 taxpayers moved from neighboring Missouri to Kansas. Putting that figure in terms that are really meaningful: That is a 6.3 percent increase in Missouri-to-Kansas migration over previous years, and that was during year one of Gov. Sam Brownback’s historic tax cut.
“The numbers paint an impressive picture in terms of wealth inflow, as well,” writes Rex Sinquefield for Forbes. “Sadly for my home state of Missouri, but happily for our neighbors in Kansas, 2013 saw an enormous income transfer from Missouri to Kansas.”
Continuing, he noted, “The jump in net income per tax return averaged $17,467 per return, meaning not only are more people choosing to ditch the Show-Me State for our western neighbor, but the people who are heading to Kansas have more money to spend, save, and invest there.”
And, of course, keeping more of your property – of which your money certainly is – amounts to more personal freedom and individual choice.
- Have you ‘liked’ Freedom.news on Facebook? Click here!
Sinquefield went onto note that the personal income tax rate in Kansas is now down to 4.6 percent, while the income tax rate on a small business is zero.
While the Kansas-Missouri border of Johnson County, KS, and Jackson County, MO – the Kansas City region – saw the most economic growth, Sinquefield notes that growth was certainly not limited to that region.
“Nearly every county in Kansas saw improvement in net wealth between 2012 and 2013, most likely due to the Brownback income tax cuts,” he writes.
In a recent interview, Kansas Secretary of Revenue Nick Jordan explained, “We have cut Kansas income taxes on average by 30 percent. About 71 percent of that went to families and individuals, 29 percent went to small business. You hear businesses got all the benefit. Not true. Kansas individuals and families experienced the biggest benefit.”
Importantly – and this has really baffled big government liberals – state revenues have continued to grow during this time. As noted by Jordan, Kansas brought in $70 million more in 2015 than in 2014. He adds that, while sales tax revenues are more sluggish than hoped for, the reality is that sales taxes are declining nationwide (part of the not-so-robust Obama economy).
“Still,” Sinquefield writes, “according to the Kansas Department of Revenue, gross domestic product (GDP) growth in Kansas remains steady, as the Sunflower State outpaces all of its neighbors except Colorado, with a 1.8 percent GDP increase in 2014 and a nation-leading 3.4 percent GDP increase in the fourth quarter of 2014.”
Bottom line: Tax cuts increase the bottom line of government revenue because leaving more money in the hands of private citizens generates more economic activity. And freedom.
See also:
