The Fight for Missouris Economic Future

BORDER WAR:

Missouris Economic Track Record

Missouris Economic Track Record (contd)

Wealth is Leaving the State

You Can Call Them Buzzards, But That Makes Missouri The Carcass

Regional Job Growth 2000-2010

Data from the Brookings Institution

Part Five: The Smallness Of The Potentially Hip Core

Job Growth in the Last Year

The Kansas/Missouri Economic Border War, In A Graph

So What Did Kansas Do?

Two Rounds of Tax Cuts in Kansas

Associated Press: Conservative Republicans pushed the initial cuts through last year while acknowledging that the plan was too aggressive and would need refinement in 2013. Those changes in the bill signed by Brownback on Thursday include decreasing income tax deductions over time as overall rates drop, as well as giving a less generous standard deduction for married couples and single parents. The top in personal income tax rate [sic] will drop to 3.9 percent for 2018, down from 4.9 percent, and promises future rate reductions in years when revenues grow more than 2 percent.
Notably, Kansass lowest income tax bracket will also drop, from 3 percent to 2.3 percent. And taken together with last years cuts, Kansass new cuts put the state on track to return nearly $4 billion to Kansans over the next five years.

Milkshakes and Handshakes: Brownback Signs Another Kansas Tax Cut

Regarding the Missouris A Low Tax State! Conventional Wisdom

Income taxes: Missouri

6% top marginal rate
Including the Kansas City earnings tax, 7%

Kansas
4.9% top marginal rate, 3.9% in 2018
No earnings tax Non-wage pass-through income taxed at 0%

The Growth Corridor

Tax Policy Matters.

A stronger reliance on income taxes seems to be associated with significantly lower levels of GDP per capita than the use of taxes on consumption and property. Within income taxes, those on corporate income seem to be associated with lower levels of GDP per capita than personal income taxes. In fact, corporate income taxes appear to be the least attractive choice from the perspective of raising GDP per capita.
Arnold, Jens. Do Tax Structures Affect Aggregate Economic Growth? Empirical Evidence From a Panel of OECD Countries. Organisation for Economic Co-operation and Development, Economics Department Working Papers No. 643. Oct. 14, 2008.

The Growth Corridor

Cato Institutes Fiscal Report Card

The Growth Corridor

Chief Executive magazine Best & Worst States for Business

Speaking of Texas, there is one other thing worth noting about Chief Executives survey what the states in the top five have in common. Three of the top five states Texas (first place), Florida (second place), and Tennessee (fourth place) do not have an individual income tax. Indiana (fifth place) just enacted legislation to cut its income tax; North Carolina (third place) is pushing hard to reduce its income taxes as well.

Missouri Is 31st For Business Friendliness In CEO Survey

The Growth Corridor 2013 United States Small Business Friendliness Survey (Kauffman Foundation/Thumbtack.com)

Small Business Friendliness Survey: Kansas Gets A, Missouri Gets C, Illinois Gets D

The Growth Corridor

CNBC Top States for Business 2013

In Case There Were Any Doubts About The Growth Corridor Were In, Heres Another Data Point

The Growth Corridor

CNBC Top States for Business 2013

The Poor Argument for Project-by-Project Tax Cuts

Tax Credits in Missouri

Tax Credits Are Growing

Annual Redemptions
$700.00
$600.00

In Millions

$500.00 $400.00

$300.00
$200.00 $100.00 $1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Tax credit redemptions total hundreds of millions of dollars each year. There are over $1 billion worth of outstanding credits. Despite this, tax credits are not subject to appropriations.

Historic Preservation Tax Credit

Historic Preservation Tax Credit

Underestimating Cost, Overestimating Return

Tax Reform

Milton Friedman on Taxes

I am in favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever its possible. The reason I am is because I believe the big problem is not taxes, the big problem is spending. The question is, How do you hold down government spending? Government spending now amounts to close to 40% of national income not counting indirect spending through regulation and the like. If you include that, you get up to roughly half. The real danger we face is that number will creep up and up and up. The only effective way I think to hold it down, is to hold down the amount of income the government has. The way to do that is to cut taxes.
Opposing Tax Cuts, Supporting Bigger Government, And The Wisdom Of Milton Friedman