Reporting by the Wichita Business Journal regarding economic development incentives in Wichita makes a big mistake in overlooking where the real money is.
Posts tagged as “Tax abatements”
In Sedgwick County, we see that once companies are accustomed to government entitlements, any reduction is met with resistance.
Wichita city leaders are proud to announce the end of cash incentives, but they were only a small portion of the total cost of incentives.
If we in Kansas and Wichita wonder why our economic growth is slow and our economic development programs don't seem to be producing results, there is data to tell us why: Our tax rates are too high.
Industrial Revenue Bonds are a mechanism that Kansas cities and counties use to allow companies to avoid paying property and sales taxes.
The issue of awarding an economic development incentive reveals much as to why the Wichita-area economy has not grown.
As Wichita considers how to grow its economy, its reliance on targeted economic development incentives should be guided by research, not the grandstanding of politicians and bureaucrats.
A look at some elements of Wichita’s legislative agenda for state government, in particular special tax treatment for special artists, problems with the city’s numbers regarding airfares, and why we should abandon the pursuit of passenger rail. Then, why are people not more involved in political affairs?
The City of Wichita wishes to preserve the many economic development incentives it has at its disposal.
Wichita government spending on economic development leads to imagined problems that require government intervention and more taxpayer contribution to resolve. The cycle of organic rebirth of cities is then replaced with bureaucratic management.
When Kansas cities grant economic development incentives, they may also unilaterally take action that affects overlapping jurisdictions such as counties, school districts, and the state itself. The legislature should end this.
A Wichita company asks for property and sales tax exemptions on the same day Wichita voters decide whether to increase the sales tax, including the tax on groceries.
The Wichita City Council will consider a proposal from a consultant to "facilitate a community conversation for the creation of a new economic development diversification plan for the greater Wichita region." Haven't we been down this road before?
Claims of a reformed economic development process if Wichita voters approve a sales tax must be evaluated in light of past practice and the sameness of the people in charge. If these leaders are truly interested in reforming Wichita's economic development machinery and processes, they could have started years ago using the generous incentives we already have.
The case of Beechcraft and economic development incentives holds several lessons as Wichita considers a new tax with a portion devoted to incentives.
Supporters of the proposed Wichita sales tax contend that the millions in incentives Boeing received were not cash. That's true -- they were more valuable than cash.
The cost of the proposed Wichita sales tax to households is a matter of dispute. I present my figures, and suggest that "Yes Wichita" do the same.
The claim that the "city never gave Boeing incentives" will come as news to the Wichita city officials who dished out over $600 million in subsidies and incentives to the company.
Wichita government leaders complain that Wichita can't compete in economic development with other cities and states because the budget for incentives is too small. But when making this argument, these officials don't include all incentives that are available.