New business filings don’t reflect full picture

smallbusinessBecause the Kansas economy is growing at a lower rate than the economies of neighboring states and the nation, Gov. Sam Brownback has pointed to new business filings as evidence that his tax cuts are starting to work. But noting that the state had more than 15,000 new business filings in 2013 doesn’t reflect the full picture. That’s because more than 16,000 other businesses were dissolved by their owners or forfeited for failure to file an annual report, according to the Center on Budget and Policy Priorities in Washington, D.C. The net increase in registered businesses, after adding back 4,500 businesses that owners reinstated that year, was only about 3,600. “When you do the math, the net new growth in Kansas in 2013 is actually smaller than before the tax cuts of 2012 took effect,” said Annie McKay, executive director of the Kansas Center for Economic Growth.