Economy

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.

Pass-Through Entities Account for 98% of Job Gains

New Census data shows that pass-through entities (proprietorships, partnerships, LLCs and sub-S corporations) added more than 54,000 jobs between 2012 and 2015, accounting for 98 percent of all private sector gains.  Most private entity types have seen little growth since 2012 but employment at the pass-through entities shot up by 12.7 percent. Kansas is also […]

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States that Spend Less, Tax Less…and Grow More

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 42 percent more per-resident in 2015 than […]

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Record-setting employment in 2016

Kansas set another private sector employment record in 2016 according to data from the Bureau of Labor Statistics, with 1.157 million jobs.  The adjacent chart reflects average annual employment on a seasonally-adjusted basis.  Kansas added 9,100 jobs in 2016 despite challenges in oil & gas extraction and agriculture. Total private sector employment will likely be even […]

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New Business Applications Setting Records

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 […]

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National Rank on Job Growth

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 […]

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Pass-through entities create most new jobs in Kansas

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 […]

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Personal Income

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 […]

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Adjusted Gross Income Migration

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 […]

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States that spend less, tax less…and grow more

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 […]

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