Quote:
Originally Posted by i'va biggen
Which as not a fucking thing to do with Brownback and his failings. If you can't defend it try a diversion.
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Move your Independent Socialist Ass to Illinois. You will fit right in... ur'a bootlicker
A Taxing Tale Of Two States: Illinois And Kansas
Steve Moore
http://www.forbes.com/sites/stevemoo...of-two-states/
Much of the political spotlight across the country is focused on the economies of two Midwestern states – Illinois and Kansas.
These two states have adopted opposite economic growth and jobs strategies. In Kansas, Republican governor Sam Brownback cut income tax rates in 2013 on workers and small businesses, while in Illinois, in 2011 Democratic governor Pat Quinn raised the personal income tax rate to 5 percent from 3 percent with the corporate tax climbing to 9.5 percent- one of the most punitive rates in the nation. This was the biggest tax increase in Illinois history.
Both of these governors have come under attack nationally for their policies. So it’s worth examining which model has worked better.
Start with jobs. According to the Bureau of Labor Statistics, in the last twelve months (ending with August 2014) Kansas has increased private sector employment by 1.13% compared to just 0.66% for Illinois. Data for the year so far show Kansas gaining more private sector jobs than Illinois (7,800 vs. 6,200), even though Illinois’ population is more than four times larger. The growth of employment since January 2013 through August of 2014 was 72 % higher in Kansas compared to Illinois (0.78% vs. 0.46%).
On economic growth, the Bureau of Economic Analysis reports that Kansas’ real GDP increase was up 1.9 % last year – slighter higher than the national average of 1.8%. Illinois crept up 0.9%.
Admittedly, it’s hazardous to draw any sweeping conclusions from such short term trends. But the left trashes Mr. Brownback for not creating enough jobs in Kansas, while they ignore the much worse jobs performance in Illinois.
Mr. Brownback has also taken heat from critics at home and around the country for a claim that his tax cuts would be instant adrenaline for the Kansas economy. That may not have been a very smart thing to say, because the point of the tax cuts is to improve long term prospects for growth. Still, the Kansas economy has grown at about an average pace and clearly outperformed its tax hiking neighbor.
Mr. Brownback is also under the gun for unexpected revenue declines this year. The credit rating agencies recently downgraded Kansas bonds. But even with the unexpected revenue dip, the state will finish the year with a positive reserve fund.
Contrast that with Illinois. Three years after Mr. Quinn’s new income taxes, the state finished FY 2014 with nearly $4 billion in unpaid bills. Vendors have to wait months to get paid what they are owed by the state government. Instead of one credit downgrade, Illinois has suffered nine. It now has one of the worst bond ratings of the 50 states.
The extra tax money for Springfield was supposed to help finance and improve the public schools – but it hasn’t happened. Reverend James Meeks, a long-time Democrat and head of Salem Baptist Church in Chicago, recently received publicity throughout the state by saying: “Our schools are still broken and getting worse. We’re last in employment or business. Our neighborhoods are deplorable,” he added.
Kansas is a mostly rural state, and it will never be Beverly Hills or Miami Beach. But it appears to be on the track to economic revival.
By contrast, Illinois is barely growing at all even though Chicago is a world class city and one of the nation’s premier tourist destinations. It is a center of trade and capital markets. So Illinois has natural advantages that would seem to make the state thrive. Chicago could be the Hong Kong of the Midwest. Instead, it is near broke, as is Springfield. “We’re looking at another giant deficit next year,” says John Tillman of the conservative Illinois Policy Institute. “The tax increase wasn’t used to fix holes in the budget and to buy time to reform programs. Instead they used the money to pay for union pensions.”
The real lesson of Illinois and Kansas is that tax policy does make a difference. Illinois has tried to tax its way back to economic health which is like bleeding a patient to heal him. Kansas is no economic race horse, but it is making a steady comeback while Illinois is one of the nation’s worst performers. That’s the taxing lesson of these two states.
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