Kansas stands out for careless decisions

My initial intent for this column was to contrast Minnesota, a high-tax, high-service state with a Democratic governor, to Kansas, a state with declining income taxes, declining services and a GOP governor. I expected Minnesota to shine.

But even though Minnesota’s economic performance has exceeded that of Kansas, the comparisons are more mixed than I anticipated.

Driving through Minneapolis, there is an overwhelming sense of energy and enterprise – lots of building and increasing high-tech investments. Indeed, overall a new economic assessment by Governing magazine ranked Minnesota 15th in the nation, while Kansas came in at 38.

But in terms of jobs created, the two states were similar, although recent Kansas losses may have pushed the state a bit farther behind.

More generally, across our region, economic conditions have generally muddled along, with no state ranking higher than Minnesota (tied with Nebraska) and the rest of our neighboring states coming in between 20th and 30th.

Minnesota income tax rates are relatively high and progressive, which have not kept high-income individuals from moving there. At the same time, Minnesotans pay no sales tax on food (compared to more than 9 percent in many Kansas communities), nor on over-the-counter drugs. And most clothing is exempted.

Thus, families spending $10,000 on food, drugs and clothing over the course of a year pay about $900 less in Minnesota than in Kansas.

In short, Minnesota is a high-tax state, but its burdens fall disproportionately on the upper middle class and the wealthy.

Equally significant, Minnesota legislators and its governor have had lengthy, substantive discussions about economic policy. For example, they are currently arguing about extending the Minneapolis light rail system, debating its prospective distribution of costs and benefits.

Conversely, since 2012, Kansas tax policy has been made willy-nilly. The governor and the Legislature bought economist Arthur Laffer’s promise of low-tax prosperity, passed a jury-rigged bill in 2012, and then subsequently increased sales taxes that disproportionately affect the least affluent.

Astoundingly, there has been little serious deliberation about tax policies; rather, they have been hastily packaged at the end of legislative sessions. Likewise, spending cuts have been ad hoc and theme-less, as funds are sliced here or there, time and again, to avoid deficits.

States all do things differently and sometimes make poor policy decisions, but Kansas has been especially reckless and thoughtless. It’s time we elect legislators who can have actual policy discussions and produce sensible legislation that seeks to benefit all our citizens.

Is making careful decisions too much to ask?

This story was originally published August 27, 2016 at 5:04 AM with the headline "Kansas stands out for careless decisions."