This opinion piece was first published by The Topeka Capital-Journal.

Kansas policymakers are understandably wary of proposing new tax relief. The failed “Kansas Experiment” that cut taxes too fast without curbing public spending by operating more efficiently pushed the state to the brink.

It epitomized irresponsible tax policy for a decade. But it is time to move beyond the previous mistakes and revisit pro-growth, responsible tax cuts.

Since the pandemic-induced recession, Kansas’s economic recovery has lagged the national average, and as neighboring and nearby states have lowered, flattened or eliminated corporate and personal income taxes to juice their economies, Kansas has done nothing. Despite a healthy balance sheet and steady employment numbers, economic growth has stalled — and outmoded tax policies help explain why.

Regionally, Kansas’ 7% corporate tax rate is significantly higher than many of its neighbors. According to the Tax Foundation, as of January 2023, Oklahoma and Missouri only tax companies at 4%; Colorado at 4.4%; Arkansas at 5.3%; and Texas doesn't tax corporate income at all.

Only Nebraska and Iowa levy higher corporate taxes, and Iowa’s governor has just proposed reducing corporate taxes and eliminating state income taxes entirely.

Corporate and personal income taxes are the most economically destructive taxes. As taxes on business capital, they reduce incentives and financial capabilities for companies to build new plants, hire more workers, or expand operations.

As taxes on labor, they discourage working longer hours, generating more income, saving for tomorrow or investing for future returns. Companies and people respond to these disincentives. Unsurprisingly, economies with higher corporate taxes — like Kansas — become stagnant and less productive as their businesses delay investments or shut their doors and move to tax-friendlier states.

Practically, this means that lower taxes enable opportunities and human flourishing. States with lower taxes make the American Dream more obtainable and working families gain the dignity of earned success.

This makes state tax policies — especially as compared to regional competitors — more important and relevant than ever. At the state level, Kansas taxes corporate income, personal income and sales, leaving local governments to assess property taxes.

A recent economic study by The Buckeye Institute used its dynamic macroeconomic model — STELA (state tax and economic long-run analysis) — to demonstrate the economic effects of five tax proposals for Kansas policymakers to consider as they look to spur a sluggish recovery.

A tax cut scenario that combines a $370 million personal income tax cut, a $50 million corporate income tax cut and a $50 million sales tax cut would boost GDP by almost $400 million and business investment by $220 million. Other tax modeling scenarios show corporate tax reductions generating strong growth, while sale tax cuts would yield less growth.

If Kansas does nothing to improve its tax policies, its economy will languish and fall further behind its regional peers. Kansas learned an important lesson from the failed “Kansas Experiment.” And it is time for state policymakers to acknowledge it and move on.

By pursuing responsible tax and spending reforms, Kansas can maintain a balanced budget, add jobs to a healthy labor market and kickstart an economic recovery by encouraging businesses and families to grow, invest and save. That is how learning a valuable lesson works.

Rea S. Hederman Jr. is the vice president of policy at the Buckeye Institute and Ganon Evans is a policy manager and analyst at Kansas Policy Institute.