bobbyhawks wrote:50th? I never believed Brownback's governing style and tax philosophy would lead to good things, but 50th is literally the worst you can do. Turns out Ayn Rand was an idiot.
Obviously Brownback's economic policies were destructive across the board but I wonder how much the "Border War" contributed to Kansas achieving the 50th spot for job creation. While it created jobs on the surface, in the background, it was bankrupting the state by essentially buying jobs at a very high price that contributed absolutely nothing to the state's economy while the funds to purchase more jobs were evaporating due to his tax policy. An unsustainable positive feedback loop.
It's worse than that. They didn't cut money needed to purchase jobs, they cut the taxes funding the jobs that were bought with incentives.
http://www.kansascity.com/news/politics ... 85532.html
By Zakoura’s tabulations — through records requests he’s made in hopes that lawmakers repeal the policy — Kansas is forgoing tax revenues on billions of dollars in annual business income (including his). He says that rescinding the exemption would raise at least $260 million in needed revenue year after year. Even fans of the tax gift say that figure is near the mark.
They needed to replace this $290 million with 86,600 net new jobs at around $70k on average without any incentives being paid out for them.
in KS someone making about $70k pays about $3000 in taxes.
2.7% on the first $15,000 of taxable income. 4.6% on taxable income of $15,001 and more
They went supply side not caring the tax money was tied up already and it didn't work. It just made other budget issues way worse because the taxes cut weren't funding extra or entitlement programs, it was funding necessities like roads
So when they had to start cutting roads, schools and other basics they cut the things businesses look at for where to locate and that's another feedback loop right there.
What they should have done is made a promise that for every 10,000 new jobs without incentives that they would lower taxes by some amount and cut off any future incentives handouts, saying that tax cuts would do the same thing.