One of the benefits of having a state line in the middle of the metro area is that competition between states and municipalities always seems to push in favor of growth. However, free-flowing incentives have been underscored by a border war between Kansas and Missouri.
This year Kansas eliminated the income tax on profits for owners in limited liability companies (LLC’s), subchapter S corporations and sole proprietorships amid a slowly recovering economy. In an effort to make Kansas more competitive in creating new jobs, some think that the new tax structure can directly affect the kind of environment that makes starting a new business more attractive. Recent radio ads are luring those business owners on the Missouri side of the state line to consider moving to Kansas… “just think what you can do with all the money you will save.”
Meanwhile, Kansas City, MO Mayor Sly James’ vision of building “Silicon Prairie” took a quantum leap forward when he successfully lobbied Google to partner with Kansas City in an exclusive test of its ultrahigh-speed fiber network, giving residents access to Internet service 100 times faster than average broadband speeds across the country. As a result, new businesses and entrepreneurs are already starting to come to Kansas City, MO. James helped create the environment for this investment by embracing local tech startups and a business incubator that crowd-funds companies.
Lower taxes, company incentives and creating the right environment for investment all impacts jobs. One thing is for sure, the Kansas City metro economy is gaining strength on the heels of creative solutions brought by both sides of the state line.