Thursday, October 2, 2014

Despite the Rhetoric, Brownback's Tax Cuts are Working and the Data Shows It

When it comes to the economy, if you listened to the Kansas City "Red" Star and the sour grapes Democrats and RINOs, you'd think Kansas was bordering on third-world status. They want you to believe that tax cuts put in place by Governor Sam Brownback and Kansas Republicans is having devastating impacts on the state's economy. Unfortunately for them, and fortunately for Kansans, nothing could be further from the truth.

According to a report released by the Bureau of Economic Analysis, personal income in Kansas has skyrocketed.  In fact, Kansas ranks 14th among all 50 states for the fastest growth in personal income.  
Personal income growth rank by state:  
State    Rank 
Nebraska 2 
Iowa 4 
Texas 6 
Arkansas 7 
Kansas 14 
Colorado 17 
Missouri 19 
Oklahoma 26
Source: Bureau of Economic Analysis
Thanks to Brownback's tax cuts, Kansans are keeping more of the money they earn.  More importantly, they putting that money back into the state's economy.

According to Business Insider, who ranked each state on the growth in eight economic measures:  unemployment rate, number of non-farm payroll jobs, gross domestic product, average wages, working age (18-64) population, value of international exports, house prices, and auto sales, Kansas outpaced all neighboring states, but one.  Meanwhile, Missouri, the state whose governor the Star loves to lavish praise on ranks at the very bottom. 

50 State Economies Are Doing, Ranked From Slowest To Fastest
42. Missouri
Missouri saw a 0.3% decrease in unemploymentThe GDP grew by 0.8% and wages grew by 0.6%. 
41. Iowa
Iowa saw a 1.8% growth in auto-sales and a 1.4% increase in the housing price index.Additionally, GDP grew by 2.9%. 
37. Arkansas
GDP increased by 2.4% and unemployment dropped by 1.4%.However, wages decreased by 0.36% and exports decreased by 7.4% 
33. Nebraska
Nebraska's GDP grew by 3%.The working age population grew by 0.43%.Additionally, the unemployment rate fell by 0.5%. 
28. Kansas
The unemployment rate dropped by 0.7%.Exports increased by 5%.And GDP increased by 1.9%.
20. Oklahoma
Oklahoma's GDP grew at a very impressive 4.2% rate in 2013.Oklahoma's exports grew by a respectable 3.7% between 2012 and 2013.Oklahoma added 33,900 jobs between June 2013 and June 2014, a 2.1% increase. 
3. Texas
Texas had a 3.3% increase in nonfarm payroll jobs. The working age population grew by 1.3%Exports grew by 4.1% to about $279 billion, solidifying Texas' lead in international exports among the states. 
1. Colorado
Colorado saw 1.2% growth in its working age population from 2012 to 2013.The state also had 2.8% growth in non-farm payroll jobs, adding 66,300 jobs between June 2013 and June 2014.
Colorado's GDP grew 3.8% year over year in 2013.
 
Source: Business Insider
The unemployment rate in Kansas is out performing the majority of the states in the region, as well, according to data compiled by the Bureau of Labor Statistics.  It should be noted that Missouri is the worst among area states.
Unemployment rate for Aug 2014: 
Rank State Rate  
2 NEBRASKA 3.6 
9 IOWA 4.5
11 OKLAHOMA 4.7
14 KANSAS 4.9
15 COLORADO 5.1
16 TEXAS 5.3
26 ARKANSAS 6.3
26 MISSOURI 6.3

More important than just knowing where Kansas' economy compares to surrounding states is understanding that this is happening at a time when the federal government has raised taxes for most Americans and Obamacare has caused insurance premiums to skyrocket.

Many economists believe Brownback's tax cuts, designed to completely phase out state income tax, didn't go far enough, fast enough.  While they may be right, in that regard, the simple fact is that the doom and gloom claims from the left are a complete fabrication.

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