The Governor believes reducing, even eliminating, the
state income tax is the key to economic growth.
I believe the way to stimulate increased manufacturing
and the mid-level paying employment it brings is property tax relief. In my
city government experience, I have not known manufacturing equipment to require
increased municipal services and, to the extent that new equipment supplants
labor, the demand for educational services is similarly not increased. Therefore, tax relief for expensive manufacturing equipment would do more to attract new plant investment.
The idea of eliminating “long-standing tax exemptions” is
an area that should be explored more intensively for economic benefits. Strange, but this area of interest a couple of sessions ago is not being discussed.
I might also note that the Brownback administration’s
avowed intent to eliminate the state income tax would shoot a big hole in the
PEAK program and the ROZ program income tax abatement. The PEAK program has had
bad unintended results with no-benefit tax relief. The ROZ program, although it will do no harm, is a mere
palliative for depopulation, which in itself is not a bad thing, unless of
course, it occurs with catastrophic effect as it did from the Plague’s
devastation of 14th century Europe. The depopulation of parts of
Kansas has occurred steadily since the mechanization of agriculture began and,
in some cases, as natural resources were depleted or eclipsed. Surely, there are
sufferers from depopulation, mainly retailers and others whose operations
become economically not viable. As a believer in “free market” economics, I
envision that a natural adjustment to a new economic reality is more beneficial
than artificial attempts to restore a bygone era. While it may be politically
tough, it is politically smarter in the long run to help declining rural areas
consolidate into economically viable communities through redirection of state
resources. Unfortunately, this is not current state policy.
Finally, in early August, 2011, I had a first-hand
experience with the new 75 mile per hour speed limit on Kansas interstates
which was instituted as an economic development measure, specifically tourism.
At the old 70 mph, most traffic (except trucks) drove at 75 mph. Now, the
trucks are going 75 and scaring the pants off of “tourists”. Most motorists are
scooting along at 80 mph. I would have preferred that Kansas lower the speed
limit on trucks to 60 or 65 as is the practice in a lot of states east of
Kansas and left the 70 mph limit alone. There was no evidence presented that
commercial truckers and tourists are choosing alternate routes due to the 70
mph limit. And, even if there was evidence, I’d just as soon that Oklahoma and
Nebraska deal with the highway damage caused by heavy trucks. Perhaps, next
session the legislators can raise the speed limit to 80 mph for more economic
development benefits.
