
The Kansas Experiment - lfowles
http://www.nytimes.com/2015/08/09/magazine/the-kansas-experiment.html?_r=0
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Artistry121
Kansas is a beautiful state but like most of the middle of the country its
population spread, lack of "entrepreneurship-role-models" in most communities
and talent flight hurt its chances of developing strong business culture even
in an easy-to-do business environment.

I grew up in KC, MO and went to school on the state line. Many of the most
promising students from my school and other schools would go out of state for
college - and most that left haven't come back yet.

The fact that Denver, Kansas City, MO and Omaha all flank the state and
contain more developed business centers also makes company development
unlikely.

Looking at this shows how little concentration there is of companies in the
whole mid-to-upper Midwest section.

[http://www.geolounge.com/fortune-500-list-by-state-
for-2015/](http://www.geolounge.com/fortune-500-list-by-state-for-2015/)

I wonder what has made Minnesota so successful.

~~~
kcmarshall
Here's a nice example of a regional success story from MN. The area around
Winona (a town on the Mississippi river between the Twin Cities and Rochester)
has a growing cluster of businesses that work with composites.
[http://www.mprnews.org/story/2015/08/07/composites-
winona](http://www.mprnews.org/story/2015/08/07/composites-winona)

Kansas wants this kind of development but doesn't want to put priority on
environmental protection, outdoor recreation or the arts. All are important to
the Winona story - as is the presence of a state university in the town.

I'm an 'expat' Kansan who now lives in MN so I have a deep appreciation for
the difference between the two.

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rrmm
The legislators' assumption was that lowering the tax rate (eventually to
zero) would bring business to the state. Ignoring arguments about the validity
and applicability of the Laffer curve, what made them think businesses would
want to set up shop there when several other states have the same benefit?

Businesses have to attract talent, and underfunding services and schools
doesn't make for an attractive state. It is painful to watch how easily the
people in charge slide into believing that one simple solution will fix
everything. Even the best of ideas and intentions end badly when taken to an
idealogical extreme.

~~~
Lavery
Without going into whether this belief is well founded (personally I don't
think it is), its a combination of two factors: an assumption that there is a
pool of potential business owners already in the state who are deterred by
higher taxes, and a desire to be like Delaware (or internationally, Ireland),
where low taxes and favorable regulatory structure are such that many large,
inter-state or multinational corporations headquarter themselves there.

The first point, as you suggested, is pretty questionable. As you pointed out,
it's worth noting that the current wave of entrepreneurship has headquartered
itself in California, New York, and Massachusetts, some of the highest tax
areas in the country.

~~~
WalterBright
There's a tech boom going on in the Seattle area (Microsoft, Amazon, Google,
Adobe, Boeing, etc.), which has no income tax.

~~~
rrmm
It seems like it's going on there more because it is conducive to
talented/idea people being there in a big group rather than about tax
structure.

Boeing though just built a new facility in another state because of union
issues (apparently).

Bottom line is that it's a part of the business decision, but not the only
part and maybe not even the biggest part.

~~~
kcmarshall
Boeing has a new assembly site in South Carolina opened in 2011.

This is especially ironic (and painful) for Kansas since Boeing had been a
major employer in the Wichita area for decades. It sold its Wichita Commercial
Airplanes division to Spirit AeroSystems in the mid-2000s.

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knieveltech
Would someone in tune with the fiscally conservative mindset be willing to
offer an explanation for the apparent fascination with cutting taxes and
downsizing government? Specifically, what are the proposed benefits for the
average citizen?

~~~
Artistry121
When I took a job in Dallas my hourly rate was less than that of my job in
Kansas City, MO. But my take home pay was higher for working the same amount
of hours. Why? MO took 7% out of my salary for state taxes.

For a family making $50,000 (simplified) that's worth $3,500/year and
everything else in Texas provided by the government seemed equal - the roads
were nice, schools were good, crime wasn't noticable... So $3,500 a year for
no noted improvement in life? That can help pay for college for children, buy
a car or nice new technology, or increase retirement savings or charitable
expenditures.

~~~
Nicholas_C
What about cost of living? And Dallas has much higher property taxes from what
I've heard.

~~~
Artistry121
I'm not familiar with property taxes. Dallas is a collection of cities and
counties all around one center - its sprawling so I bet taxes vary.

My anecdotal experience between the two cities is that Dallas is more
expensive in the downtown area than KC but once you get into the suburbs the
massive amount of development in Dallas brings prices down quickly so suburban
living costs are similar.

~~~
TheCoelacanth
Localities in the Dallas area charge 2-3% of the market value of the
property[1]. KC charges ~%0.3 of the market value (1.59% of the "assessed
value" which is defined as 19% of the market value for residential
properties)[2]. So, yeah, the property taxes are much higher in Dallas.

[1] [http://www.davedowns.com/dallas-property-
tax.htm](http://www.davedowns.com/dallas-property-tax.htm) [2]
[http://kcmo.gov/finance/property-taxes-2/](http://kcmo.gov/finance/property-
taxes-2/)

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roneesh
The single minded focus on taxes to recruit businesses strikes me as severely
misguided. Sure, found a business here in Kansas where you save on paying high
taxes on your business. Pay it all back when your child makes the mistake of
enrolling in the University of Kansas system. Perhaps this isn't the specific
case in Kansas, maybe the Kansas system has lowered costs, but I have a
feeling you pay it back in some form when you finally, in some way start to
imbibe on a now underfunded public entity.

~~~
success_hawk
The University of Kansas has one of the lowest tuition prices in the country
for a state uni. The problem is the overall education you get from the public
schools and that there are very few locations to get job, when comparing pay
nationally, with decent pay.

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norea-armozel
I gave up on my home state barely a year ago. When I graduated from Wichita
State there wasn't much in the way of actual software developer jobs in the
city or even up north near Topeka. It was fairly depressing to have to accept
a job out of state since despite all its flaws it's my home. But since I can't
find real work back home and the fact it seems the state Republican party is
hell bent to run out any business that doesn't follow its status quo
(especially companies who are LGBT friendly/inclusive) I won't be coming back
other than to bury my parents.

Maybe someday I'll come back to my home state but only when the madness in the
state capital has ran its course and actual competent politicians are at the
helm. Until then I'll be working up here in Minneapolis Minnesota (even though
I hate the traffic and the winter weather... BLEH!).

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cromulent
I listened to the Planet Money episode last week (of the same title and
subject from last year).

[http://www.npr.org/sections/money/2014/10/22/358105415/episo...](http://www.npr.org/sections/money/2014/10/22/358105415/episode-577-sam-
brownback-s-kansas-experiment)

