From Investor’s Business Daily, a look at recent events in Kansas economic and political history.
Laffer And Moore: Sweet Supply-Side Revenge For Tax Cutters In Kansas
Arthur B. Laffer and Stephen Moore
We join the story of Kansas in January 2011, when former U.S. Sen. Sam Brownback takes office as Kansas’ 46th governor along with a Republican-controlled House (92 Republicans and 33 Democrats) and Senate (32 and 8) to have his back.
The Kansas economy, while far from being a catastrophe, had been underperforming for a long time. The unemployment rate was 6.8%. Using IRS data of tax filers, in every single year from the 1992 tax year through 2012, Kansas has experienced a net loss of adjusted gross income (AGI) to the rest of the nation.
If, over the past 21 years before Brownback’s tax cuts took effect, the net flow of AGI had been zero instead of what it actually was, the state of Kansas would now have almost $4 billion of additional AGI per year and all the derivative benefits that come with higher incomes.
And perhaps worst of all, Kansas’ pension system was ranked second worst in the nation in terms of solvency, with a funding ratio in the 50% range.
Continue reading at Investor’s Business Daily, Laffer And Moore: Sweet Supply-Side Revenge For Tax Cutters In Kansas.