Press Release  Kansas Policy Institute
FOR IMMEDIATE RELEASE
Contact:Anne Chandler (316) 634-0218
 

New Study Promotes Competitive Tax Policies
 
(Wichita, Ks Mar. 24, 2010)  "Positioning Kansas for Economic Growth with Competitive Tax Policies" shows how Kansas' tax policies compare with neighboring states and recommends how tax policy can be used to position the state to be more competitive for job creation and retention.  The study is published by Kansas Policy Institute (KPI) and is authored by Jonathan Williams, adjunct fiscal policy fellow with KPI and director of the Tax and Fiscal Policy Task Force for the American Legislative Exchange Council (ALEC).
 
Williams' study shows that Kansas ranks next-to-last among neighboring states in two key comparisons of tax policy. The Tax Foundation's 2010 State Tax Comparison ranks Kansas at #32, with Nebraska at #33 and in last place in the region. Kansas ranks #24 among the 50 states on the ALEC/Laffer Economic Competitive Index; Colorado leads the region with a #2 ranking, followed by Texas (#10), Oklahoma (#15), Missouri (#23) and Nebraska (#29).  The ALEC/Laffer Index is based on 15 policy variables that have a proven impact on the migration of human and investment capital throughout the states. 
 
Kansas lawmakers currently face some daunting challenges in trying to balance the FY 2011 budget, partly because the state increase in spending caused it to spend down a $935 million surplus and entered the recession with no rainy day fund.  Williams cautions lawmakers to resist the temptation to raise taxes, however.  "Having aggressive competitors just across state lines should serve as a strong reminder that policy changes are not created in a vacuum," said Williams.  "Kansas already is experiencing negative migration trends and that will only get worse if taxes increase.  The historical evidence is clear; states that keep both spending and taxes low exhibit the best economic results, while states that follow the tax-and-spend path lag far behind."
 
The complete study is available on the
KPI website and printed copies are available upon request.
About the Author
 
Jonathan Williams is an adjunct Fiscal Policy Fellow with KPI and is the director of the Tax and Fiscal Policy Task Force for the American Legislative Exchange Council (ALEC), where he works with state legislators and the private sector to develop free-market fiscal policy solutions in the states. Prior to joining ALEC, Jonathan served as staff economist at the non-partisan Tax Foundation, authoring numerous tax policy studies. His work has been featured in many publications including The Wall Street Journal, The Los Angeles Times, Forbes and Investor's Business Daily. With Dr. Arthur Laffer and Steve Moore, Williams co-authored Rich States, Poor States: ALEC-Laffer Economic Competitiveness Index. Jonathan has been a contributing author to the Reason Foundation's Annual Privatization Report and has written for the Ash Institute at the Kennedy School of Government at Harvard. A Mid-Michigan native, Williams graduated magna cum laude from Northwood University in Midland, Mich., majoring in economics, banking/finance, and business management. While at Northwood, he was the recipient of the prestigious Ludwig von Mises Award in Economics.
About Kansas Policy Institute
 
Kansas Policy Institute is an independent non-profit organization that advocates for free enterprise solutions and the protection of personal freedom.  Our work is focused on state and local economic issues in Kansas with particular emphasis on education, fiscal policy and health care.  We empower citizens and legislators with credible research and creative ideas to promote a low-tax, pro-growth environment that preserves the ability to provide high quality services.