FOR IMMEDIATE RELEASE:
October 20, 2016
Kansas economy withers in the wake of failed tax policy
New KCEG infographic shows stunted state economy compared to region, nation
TOPEKA – When Gov. Sam Brownback’s plan to eliminate the state income tax was signed into law in 2012, he promised Kansans it would spur economic growth across the state. In fact, he described it as a “shot of adrenaline for the Kansas economy.” Four years later, the “March to Zero” has fallen far short on its promise, instead delivering a broken budget and lackluster job growth.
The latest infographic from the Kansas Center for Economic Growth (KCEG) shows that current tax policy has failed to grow the Kansas economy in both personal income and gross domestic product. Kansas lags the six-state region and the nation on both counts.
“The Governor’s tax plan was pushed through the Legislature in the name of job creation,” said KCEG Executive Director Heidi Holliday. “Unfortunately, data shows that economic growth in Kansas has become stunted while neighboring states and the nation grow strong.”
Since the fourth quarter of 2012, personal income growth in Kansas only increased 1.6 percent, versus 2.8 percent for the region and 3.1 percent for the nation. Meanwhile, Kansans endured nine rounds of budget cuts and three statewide credit rating downgrades.
“Governor Brownback’s tax experiment has simply not delivered the economic boon he promised,” said Holliday. “Kansas’ growth falls dramatically short of what we need to avoid deeper cuts to our public schools, highways, and public safety. Without commonsense tax reform, the state’s fiscal health will continue to wither alongside our economic performance.”