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Taxing Kansans to lure and subsidize their competitors

March 03, 2010

The Kansas legislature has decided that abusing its current taxpayers to subsidize newcomers is the way over the rainbow:

The tax bill rewrites the rules for an incentive program created last year to encourage companies to move jobs from other states to Kansas. The program allows firms to keep 95 percent of the income taxes withheld from workers' paychecks for at least five years if they move at least five jobs to Kansas.

Under the bill, nonprofit groups and even some federal government agencies would be eligible. Also, out-of-state companies would qualify if they bought Kansas companies and kept jobs in Kansas. The wages employers would have to pay to qualify also would be lower than is required now.

So existing businesses who have been paying taxes all along will get to compete with state-subsidized newcomers. That will grow the Kansas economy like using your wife's money to pick up girls at the bar will grow your marriage.

Hat Tip: David Brunori.