Measuring the performance of a state economy is not a simple matter, and estimating the economic impact of a single policy change is even more complex. Since media and others have attempted to use a variety of economic measures to determine whether 2012 tax reform is ‘working,’ this section examines key economic performance measures on both sides of implementation. Accordingly, each article focuses exclusively on private sector measurements since tax reform was not intended to grow government.
Kansas Secretary of State Kris Kobach reports new business filings set another record in 2016. There were 18,147 new domestic business filings last year and the total number of entities in existence also set another record at 187,305. The number of entities in existence does not include proprietorships. Research conducted by Dr. Arthur Hall, Center […]
The first three years after reducing income taxes saw the Kansas job rank improve nicely according to data from the Bureau of Economic Analysis. Over the fourteen years leading up to 2012, private sector jobs grew by 6.3 percent and that growth rate ranked #41 among the states. But in the three years since income […]
U.S. Census data shows that pass-through entities (LLC, sub-S corporations, partnerships and proprietorships) created most of the new jobs in 2013 and 2014. Census only began tracking this information by state in 2010 and hasn’t published 2015 data at this writing so we only have two years of change before and after tax reform to […]
Private sector jobs grew 4.1 percent between over the last four years (June to June, as of August 5, 2016). While that is less than the national average of 8.9 percent, it is a better performance to the 50-state average than over the previous fourteen years. Private sector job growth for Kansas was only 2.2 […]
Personal Income is often used as a measurement of economic growth but it can be skewed up or down by changes unrelated to private sector economic activity. Media and others also have cited Personal Income changes to measure the efficacy of state tax policy even though large portions of Personal Income are unrelated. The phrase […]
Kansas historically has lost Adjusted Gross Income (AGI) due to migration in and out of the state, recording net gains only in four of the last twenty-two years, but IRS migration data shows encouraging improvement. Net AGI out-migration grew worse each year between 2009 and 2012 but the losses declined in 2013 and 2014. Movement […]
The amount that government taxes is determined solely by the amount it chooses to spend to provide services. Every state provides the same basket of services (education, highways, social services, etc.) but some states do so at much lower costs. For example, the states that tax income spent 48 percent more per-resident in 2014 than […]