Interventionism

Swamp refilling itself

Swamp refilling itself

Although there has been progress, cronyism and the swamp may be renewed in Washington. Right under the nose of a president who promised to drain the swamp, one of the government’s shadiest handouts to large banks and big companies looks like it will be renewed for another 25 years. It will not get adequate oversight and congressional review. All it will take is the approval of two out of three U.S. Export-Import Bank directors, who are political appointees. That entity is called the Private Export Funding Corporation, or PEFCO. Veronique de Rugy is a Senior Research Fellow at the Mercatus…
Read More
More Wichita planning on tap

More Wichita planning on tap

We should be wary of government planning in general. But when those who have been managing and planning the foundering Wichita-area economy want to step up their management of resources, we risk compounding our problems. As announced by the City of Wichita, "In response to recent recommendations from Project Wichita and the Century II Citizens Advisory Committee, community organizations and their leadership are stepping forward to take the next step to create a comprehensive master plan and vision that connects projects and both banks of the Arkansas River." The city says these organizations will be involved: Downtown Wichita Greater Wichita…
Read More
More TIF spending in Wichita

More TIF spending in Wichita

The Wichita City Council will consider approval of a redevelopment plan in a tax increment financing (TIF) district. This week the Wichita City Council will hold a public hearing considering approval of more tax increment financing (TIF) spending in downtown Wichita. The spending is for the second phase of redevelopment of the Union Station property on East Douglas. According to city documents, the total cost of this phase is $31,000,000, with TIF paying for $2,954,734. [1. Wichita city council agenda packet for September 11, 2018.] This is a pay-as-you-go form of TIF, which means the city does not borrow funds…
Read More
Tax benefits for education don’t increase education

Tax benefits for education don’t increase education

Here's evidence of a government program that, undoubtedly, was started with good intentions, but hasn't produced the intended results. Tax season ended last week. Taxpayers have filed for over $30 billion in credits and deductions for college expenses they paid in 2017. Evidence now clearly shows that these credits have zero effect on college attendance. The tax credits surely make those who get them better off, but they do nothing to increase education. If their intent is to increase schooling, they are a failure. Continue reading at The Brookings Institution article The tax benefits for education don’t increase education.
Read More
PEAK, or Promoting Employment Across Kansas

PEAK, or Promoting Employment Across Kansas

PEAK, a Kansas economic development incentive program, redirects employee income taxes back to the employing company. An economic development incentive program in Kansas is PEAK, or Promoting Employment Across Kansas. This program allows companies to retain 95 percent of the payroll withholding tax of employees. PEAK incentive payments can be a substantial sum. Tables available at the Kansas Department of Revenue indicate that for a single person with no exemptions who earns $40,000 annually, the withholding would be $27 per week (for weekly payroll), or $1,404 annually. For a married person with two children earning the same salary, withholding would…
Read More