January 28, 2016
A few years ago, the Kansas governor and state lawmakers signed on for an experimental approach to economic development. The premise? Cut income tax for high end folks who earn income from business enterprises, and it will trickle down into the economy.
Trouble is, the premise was wrong. Now the governor’s approval rating is at a historic low, said two economic development experts from Kansas who spoke at the Oklahoma Policy Institute’s Third Annual State Budget Summit.
Duane Goossen and Annie McKay of the Kansas Center for Economic Growth said the lesson is simple — don’t be like Kansas. Cutting income taxes starting with those with the most income forced overreliance on the limited incomes of the lower classes, caused historic increases in sales taxes, increased property taxes, depleted the state’s rainy day fund, and took money from the road fund and other funds to buoy up the state’s general fund.
None of these measures have created enough revenue to solve the problem which Goossen and McKay say will take a full generation to overcome.
Goossen and McKay are two of a host of speakers at the summit which was held at the Will Rogers Theatre in Oklahoma City.
Norman Mayor Cindy Rosenthal joined lawmakers and other leadership in a panel discussion, and OPI Executive Director David Blatt presented numbers on Oklahoma’s budget crisis as well as presenting ideas for recovery.
Stay tuned to the Transcript for more on these economic policy discussions.
Read more from the Norman Transcript here.