By State Representative Reid Petty
I wanted to share with everyone some exciting statistics about how Kansas is thriving to show that lawmakers desire to cut income taxes has so far been a huge success.
Missouri Speaker of the House Tim Jones recently wrote an op-ed in the Kansas City Star encouraging Missouri lawmakers to take the same approach that Kansas has in cutting income taxes. The reason for this is because Speaker Jones has observed what Kansas has done and what the numbers are showing.
Since last year’s major income tax cut, Kansas had more than 15,000 new small business filings, which is the largest number in state history. With further income tax cuts this year, economists at Wichita State University project that Kansas will double its monthly job growth in 2013.
Since Governor Brownback has taken office in 2011, Kansas unemployment rate has dropped from 7.2 percent to 5.5 percent.
Missouri’s unemployment on the other hand has stayed level at 6.6 percent.
In the past year since the income tax cuts, Kansas jumped from 27th to 11th in total economic climate, while Missouri fell from 7th to 23rd.
In the first five months of 2013, the Kansas side of Kansas City gained nearly 8,000 new jobs, while Missouri lost 400.
When it comes to construction jobs, the Kansas City Business Journal reports that during the past fiscal year the Kansas side of KC gained 1,400 jobs, while Missouri lost 1,600.
The Kauffman Foundation’s small business climate ranking, which is key to the Kansas City area gives Missouri a C and Kansas an A.
Kansas recently ended the fiscal year with approximately $764.8 million in the bank. In 2011, when the Republicans had a clean sweep, Kansas was facing a $500 million deficit and turned it into a large surplus.
Kansas has gone from the second highest to the second lowest tax burden in the region. This took place by cutting taxes while adding an additional 15,000 private sector jobs since January of 2011.
As this last fiscal year just ended, the Kansas Department of Revenue released that the state ended the year with $88.6 million more than the projected estimates and approximately $159.6 million more that the state took in the previous fiscal year.
All of this with tax cuts occurring. Tax receipts for just last month beat monthly projections by more than $25 million.
Some have called the move to lower the income tax rates a risky experiment. Call it what you want, but the risk is paying off. Kansas is lowering taxes, gaining businesses, gaining jobs and gaining people.
These numbers are very exciting to me, and I look forward to continuing to support the path to zero on income tax so our state can continue to grow and we can keep more of your own money in your hands.
Even though this isn’t an election year, I will still have a fair booth at this year’s Five State Free Fair on Aug. 1, 2 and 3 at the Seward County Activity Center. I hope you will stop by and say hello and ask any questions you may have.