“Lost Decade” not accurate basis for tax changes

We focus on education policy, but right now it is inextricably linked with tax policy. We’ve heard reference recently to the “lost decade” argument and found this explanation helpful.

“Clearly, the actual record of Kansas’ economy between 2000 and 2010 shows the inaccuracy of calling it a “lost decade.” Two periods of nationwide recession over a relatively short time – the first of which particularly hurt Wichita and the second of which was the worst economic downturn in decades – could only skew job growth downward. And, still, some places in Kansas actually gained jobs during those tough economic times…

“Where these facts really become troublesome is when they are used to justify a tax-cut plan whose promised benefits have yet to materialize. Revising history to label the period from 2000 to 2010 a ‘lost decade’ for Kansas is not just inaccurate. When used as reason to double down on a failed experiment it causes even more problems. The loss of revenue is limiting what we can invest in quality schools, safe communities, public health, and roads. These are the tried and true building blocks of job creation and economic growth, without which it will be very difficult for Kansas to catch up to – and eventually surpass – neighboring states and the entire country as we recover from the deep impacts of the Great Recession.”

Read more here: http://realprosperityks.com/wp-content/uploads/2013/02/Lost-Decade-Report-final.pdf

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