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by German Lopez 02.04.2013
Posted In: News, Budget, Economy, Governor, Taxes at 02:44 PM | Permalink | Comments (1)
 
 
kasich_2

Kasich Budget Expands Medicaid, Cuts Taxes

Governor proposes health care expansion despite opposing Obamacare

Gov. John Kasich released his 2014-2015 budget plan today, and it has a few surprises — some pleasant, some not — for progressives. Despite his vocal opposition to Obamacare, Kasich will be taking up the federal laws incentive to expand Medicaid, the health care program for low-income families. But instead of taking back past cuts to social services, education and local governments, the governor is pushing ahead with income and sales tax cuts.

The Medicaid expansion would add more Ohioans to the state-federal health care program by raising the eligibility threshold to 138 percent of the federal poverty level, up from 90 percent. The budget summary claims the expansion makes financial sense for the state as long as the federal government picks up most of the tab. As part of Obamacare, the federal government takes all the costs for newly insured Medicaid recipients for the first three years. After that, the federal government’s share is brought down to 95 percent and ultimately phased down to 90 percent. If the federal government reneges on its promise to pay for the bulk of the share, Kasich’s budget has a trigger to wind down the Medicaid expansion.

The budget also proposes income and sales tax cuts, which would come with some trade-offs. The state income tax would be brought down by 20 percent across the board, and the sales tax would be cut from 5.5 percent to 5 percent. To balance the cuts, Kasich has proposed broadening the sales tax to include other “economic activity,” while keeping exemptions for education, health care, rent and residential utilities.

In another slew of tax changes, Kasich’s plan proposes revamping the oil and gas severance tax. It would eliminate the tax for “small, conventional natural gas producers,” but imposes a 4 percent tax for bigger oil and gas producers.

In the past, liberals have voiced opposition to tax cuts — instead favoring investments elsewhere. Policy Matters Ohio released its own budget proposals Jan. 31, which emphasized “education, health care and human services.” The plan would also increase the income tax for top earners.

City Council Member P.G. Sittenfeld released a statement criticizing Kasich’s budget for not using the extra revenue to scale back local government and education cuts enacted in the 2012-2013 budget: “At a time when local governments around the state are being forced to slash basic services, lay off safety personnel, raise taxes, and sell off assets just to stay afloat, it's out of touch for Gov. Kasich not to reverse his raid on our local government fund. We don’t pay taxes to pad the governor’s soundbites, we pay them to maintain our roads and keep cops on the street. This should not be a partisan issue. It's simply illogical governance to make the state look good while in the process hurting Ohio's cities.”

The budget proposal also includes Kasich’s Ohio Turnpike plan and education reform plan.

 
 
by German Lopez 01.02.2014
Posted In: News, Abortion, Budget, Governor at 01:00 PM | Permalink | Comments (1)
 
 
guttmacher abortion

Ohio’s Latest Abortion Restrictions Follow Nationwide Trend

States passed more abortion restrictions in past three years than previous decade

Ohio was among various states in the nation that passed more abortion restrictions between 2011 and 2013 than the entire previous decade, according to the Guttmacher Institute.

Between 2011 and 2013, states passed 205 new restrictions on abortion. Between 2001 and 2010, states passed only 189 new restrictions.

The trend is unsurprising for Ohio, which the Guttmacher Institute says has been “hostile to abortion” since 2000, but the timeline shows a clear shift in state policies around the nation since the tea party rose to national prominence in 2010.

Ohio’s latest restrictions were passed last June by Ohio Republicans through the two-year state budget.

Among other restrictions, one measure forces doctors to perform an external ultrasound on a woman seeking an abortion and tell her if a heartbeat is detected and the statistical probability of the fetus making it to birth.

Ohio and Oklahoma were also the only states in 2013 to pass restrictions on federal funding for family planning providers, the Guttmacher Institute claims.

Abortion providers, including Planned Parenthood, insist they don’t use public funds for abortions, instead funding the procedure with the help of private contributions.

But Ohio Republicans, who predominantly oppose abortion rights, went through with the restrictions anyway, ultimately hitting some family planning service providers that don’t even offer abortions.

“Members of the House who have issues with Planned Parenthood have only issues with the abortion services,” Michael Dittoe, spokesperson for Ohio House Republicans, told CityBeat last June. “The rest of what Planned Parenthood provides, I imagine they have no issue with whatsoever.”

Ohio Democrats, particularly gubernatorial candidate Ed FitzGerald, have made their opposition to the anti-abortion measures part of their campaigns to unseat Gov. John Kasich and other Ohio Republicans who hold top executive positions in the state. But given the Guttmacher Institute’s timeline, reversing the trend could require a radical shift in the state government of the past 14 years.


 
 
by German Lopez 01.17.2013
 
 
nina turner

Morning News and Stuff

Secretary of state race underway, bridge may need private funding, sewer policy dismissed

Is the race for Ohio secretary of state already underway? Ohio Sen. Nina Turner, who is considering a run against Secretary of State Jon Husted in 2014, says she will introduce legislation to protect voters against Republican efforts to limit ballot access. She also criticized Husted for how he handled the 2012 election, which CityBeat covered here. Husted responded by asking Turner to “dial down political rhetoric.”

Build Our New Bridge Now, an organization dedicated to building the Brent Spence Bridge, says the best approach is private financing. The organization claims a public-private partnership is the only way to get the bridge built by 2018, rather than 2022. But critics are worried the partnership and private financing would lead to tolls.

The Hamilton County Board of Commissioners threw out a Metropolitan Sewer District competitive bidding policy yesterday. The policy, which was originally passed by City Council, was called unfair and illegal by county commissioners due to apprenticeship requirements and rules that favor contractors within city limits. Councilman Chris Seelbach is now pushing for compromise for the rules.

Believe it or not, Cincinnati’s economy will continue outpacing the national economy this year, says Julie Heath, director of the University of Cincinnati’s Economics Center.

Three Cincinnati-area hospitals are among the best in the nation, according to new rankings from Healthgrades. The winners: Christ Hospital, Bethesda North Hospital and St. Elizabeth Healthcare-Edgewood.

Democrat David Mann, former Cincinnati mayor and congressman, may re-enter politics with an attempt at City Council.

In its 2013 State of Tobacco report, the American Lung Association gave Ohio an F for anti-smoking policies. The organization said the state is doing a poor job by relying exclusively on federal money for its $3.3 million anti-tobacco program. The Centers for Disease Control says Ohio should be spending $145 million.

The Air Force is gearing up for massive spending cuts currently set to kick in March. The cuts will likely affect Wright-Patterson Air Force Base.

Dennis Kucinich, who used to serve in the U.S. House of Representatives, will soon appear on Fox News as a regular contributor.

For anyone who’s ever been worried about getting attacked by a drone, there’s now a hoodie and scarf for that.

 
 
by German Lopez 07.30.2013
Posted In: News, Budget, City Council at 10:11 AM | Permalink | Comments (0)
 
 
qualls

Council to Undo $4 Million in Budget Cuts

Human services, parks among programs getting funding restorations

A motion proposed by a majority of City Council today would use leftover revenue from the previous budget year to undo cuts to various programs, including human services, parks and the Health Department.

The restorations mean no city workers will be laid off as a result of the operating budget passed in May. Previously, 60 positions had been cut, but many employees remained in different offices while the budget situation was worked out.

The cuts were previously approved with the 2014 budget before council members knew final revenue numbers for fiscal year 2013, which ended June 30. Council had to pass the budget 30 days early because the city’s use of emergency clauses, which eliminate a waiting period on passed laws, was being held up in court.

The city ended up with roughly $10 million more revenue than projected in the past budget year. The Council motion uses nearly $4 million to undo some of the $20 million in cuts carried out in the latest budget. The rest of the extra revenue will be held until the city manager makes further suggestions, but some of that money will likely be saved for next year’s budget gap, Vice Mayor Roxanne Qualls said at a press conference.

Human services funding is getting more than $510,000 restored, putting the program at 0.4 percent of the operating budget. Cincinnati has historically set a goal of directing 1.5 percent of the operating budget to human services, which flows through various agencies that aid low-income and homeless Cincinnatians.

The Health Department is getting the largest restoration at $900,000, allowing the city to bring back positions affecting junked vehicles, rodent control, litter and weed response, infant mortality and more.

Parks will also get back $400,000 out of $1 million that was cut in the previous budget. Another $312,000 is being used to restore recreation funding, particularly to keep the Busch Center open.

Other programs getting money back: the Center for Closing the Health Gap, Cincinnati USA Regional Chamber, Film Commission, African American Chamber of Commerce, Urban Agriculture Program, Office of Environmental Quality, Neighborhood Support Fund, Neighborhood Business District Support Fund, Law Department and funding to 3CDC for Fountain Square maintenance.

Qualls claimed the higher-than-projected revenues are evidence the city’s economic strategy is so far successful.

“Cincinnati’s strategy of investing in jobs, neighborhoods, people is working,” she said. “We are seeing an increase in revenue as a result of investments we are making.”

Qualls also acknowledged that the budget debate has felt like a “roller coaster” for many citizens. Originally, Mayor Mark Mallory’s administration claimed it would have to lay off police and firefighters if the city didn’t lease its parking meters, lots and garages to the Greater Cincinnati Port Authority. But when the parking lease was held up in a court challenge, Council managed to pass a budget without the public safety layoffs. Now, Council is undoing further cuts and moving forward with the parking lease.

After the press conference, Qualls told CityBeat that some of the unused revenue may also be used to finance a disparity study that would gauge whether the city should change its contracting policies to favorably target minority- and women-owned businesses.

 
 
by German Lopez 02.07.2013
Posted In: Budget, Economy, News, Governor, Taxes at 03:07 PM | Permalink | Comments (2)
 
 
kasich_2

Kasich Tax Cut Favors Wealthy

Top 1 percent to get more than $10,000 a year from cuts

Gov. John Kasich says he’s cutting everyone’s taxes in his 2014-2015 budget, but an analysis released Thursday found the plan is actually raising taxes for the poor and middle class. The Policy Matters Ohio report reveals the poorest Ohioans will see a tax increase of $63 from Kasich’s budget plan, while the top 1 percent will see a tax decrease of $10,369.

For the poorest Ohioans, the new tax burden comes through the sales tax. On average, the bottom 20 percent of the income ladder will have their income taxes reduced by $8, but the sales tax plan will actually increase their average sales tax burden by $71.

The middle 20 percent fares slightly better. Under the budget proposal, they will get a $157 income tax cut on average, but their sales tax burden will go up by $165 — meaning they'll end up paying $8 more in taxes.

The top 1 percent get the most out of Kasich’s tax plan. Their income taxes will be reduced by a whopping $11,150. The top 1 percent do see the highest sales tax increase at $781, but it’s nowhere near enough to make up for the massive income tax cut.

Kasich says his budget is all about creating jobs and spurring the economy, but the regressive tax system defies economic research. A previous analysis from the Congressional Budget Office (CBO), which measures the budgetary and economic impact of federal policy, found letting tax cuts expire on the wealthy would barely dent the economy. The same report also found the economy greatly benefits from tax and social welfare programs that disproportionately benefit the lower and middle classes.

Another report from the Congressional Research Service (CRS) also concluded tax hikes on the rich would have negligible economic impact. The findings made national Republicans so angry that they pressured CRS to pull the report. CRS later re-released the study — except this time it had nicer language to appease politicians that can’t handle reality.

Kasich’s plan proposes cutting the state income tax by 20 percent across the board and lowering the sales tax from 5.5 percent to 5 percent. To pay for the cuts, the proposal broadens the sales tax so it applies to additional services — including cable TV services, coin-operated video games and admission to sports events and amusement parks — while keeping exemptions for education, health care, rent and residential utilities.

For more analysis of Kasich’s budget, check out CityBeat’s other coverage:

 
 
by German Lopez 02.18.2013
Posted In: Budget, Governor, News, Education, Economy, Taxes at 10:11 AM | Permalink | Comments (0)
 
 
ohio statehouse

Morning News and Stuff

PUCO appointment criticized, poll supports school funding, superintendent investigation

Gov. John Kasich appointed a former Republican to a Public Utilities Commission of Ohio (PUCO) seat that must go to a Democrat or Independent, according to The Plain Dealer. M. Beth Trombold will finish her term as the assistant director in Kasich’s Ohio Development Services Agency in April, when she will then take up the PUCO position. The appointment immediately drew criticism from some Democrats. State Rep. Mike Foley of Cleveland called the appointment “another example of Kasich cronyism running rampant.”

A poll from Innovation Ohio, a left-leaning policy research group, found Kasich’s budget proposals aren’t popular with most Ohioans. The poll found 62 percent of Ohioans prefer prioritizing school funding over reducing the state income tax, while only 32 percent prefer tax reduction. When asked what Ohio lawmakers should prioritize in the coming months, 56 percent said job creation, 38 percent said school funding, 24 percent said keeping local property taxes low and 18 percent said cutting the state income tax.

A school superintendent from Warren County may face prosecution for misusing public resources after he wrote a letter to parents urging them to campaign against Kasich, reports Dayton Daily News. Franklin City Schools Superintendent Arnol Elam was apparently angry with Kasich’s new school funding formula, which did not increase funding for poor school districts like Franklin Cities, but did give increases to Springboro, Mason and Kings — the three wealthiest districts in Warren County. County Prosecutor David Fornshell said he will be investigating Elam for engaging in political activity with public resources.

Kasich will give his State of the State Tuesday. The speech is expected to focus on the governor’s budget and tax reform plans.

As part of an agreement with the city, Duke Energy is suing over the streetcar project, according to WLWT. The lawsuit is meant to settle who has to pay for moving utility lines to accommodate for the streetcar. CityBeat covered the agreement between the city and Duke here and how the streetcar will play a pivotal role in the 2013 mayor’s race here.

Thousands of people in Butler County, mainly students, are benefiting from Judge Robert Lyons’ criminal record seals, according to The Cincinnati Enquirer. Lyons’ practice of sealing cases came to light after he sealed the case for the Miami University student who posted a flyer on how to get away with rape. In the past five years, Lyons has sealed 2,945 cases — more than a third of the new misdemeanor cases filed.

Ohio’s casinos are falling far short of original revenue projections, according to The Columbus Dispatch. It’s uncertain why that’s the case, but some are pointing to Internet-sweepstakes cafes. Cincinnati’s Horseshoe Casino, which will open March 4, was spurred by the original projections.

StateImpact Ohio reports that many Ohio teachers are concerned with new teaching evaluation rules.

Two Cincinnati Republicans will begin reviewing the effects of legislation that deregulated phone companies in Ohio, reports Gongwer. State Rep. Peter Stautberg, who chairs the House Public Utilities Committee, and State Sen. Bill Seitz, who chairs the Senate Public Utilities Committee, will hear testimony from PUCO Tuesday.

Downtown’s Chiquita center has landed in bankruptcy, reports WCPO. The building lost its major tenant last year when Chiquita Brands relocated to Charlotte, N.C.

“Star Trek” is becoming reality. University of Cincinnati researchers are developing a tricorder device to help users monitor their own health, reports WVXU.

Are you worried about space rocks recently? Popular Science says NASA is concerned as well.

 
 
by German Lopez 09.19.2012
Posted In: News, Budget, Economy, Transportation at 08:51 AM | Permalink | Comments (0)
 
 
mark mallory

Morning News and Stuff

Hamilton County Commissioner Greg Hartmann wants Mayor Mark Mallory to live up to past promises of county-city collaboration. In a letter to Mallory, Hartmann criticized the mayor for failing to stick to his pledge of supporting the City-County Shared Services Committee. The committee seeks to streamline county and city services to end redundancies and make the services more competitive and efficient.

Cincinnati Economic Development’s director asked City Council to create a “mega incentive” for “huge impact” development. He also asked City Council to pledge $4 million of casino revenue a year to a local neighborhood project. If City Council agrees, casino revenue will be used to boost local businesses.

Metro is looking at the world’s quickest-charging electric bus. It supposedly can charge in 10 minutes and travel 40 miles.

The day before Pennsylvania’s voter ID law faced trouble in court, Secretary of Jon Husted suggested a “more strict” voter ID law for Ohio. Husted said the current ID system needs to be streamlined and simplified. Democrats criticized the suggestion for its potential voter suppression.

Sept. 22 will be the “Global Frackdown,” a day where activists will protest around the world in a push to ban hydraulic fracturing — or fracking. Cincinnati will have its own “Frackdown” at Piatt Park. Activists are generally against fracking because it poses too many risks, which CityBeat covered here. But Gov. John Kasich and other supporters of fracking insist it can be made safe with proper regulations. Some have also suggested that natural gas, which is now plentiful due to the spread of fracking, can be used as part of a bigger plan to stop global warming.

A new survey says Cincinnati companies will continue hiring through the fourth quarter. 

It wasn’t as good as last year, but it was better than the month before. A new state report says 7,341 new businesses filed to do work in Ohio in August, down from 7,423 in August 2011.

A state commission approved $1.5 million for the Cincinnati Art Museum and a $600,000 reimbursement for the Art Academy of Cincinnati.

More than half of Ohioans could be obese by 2030, a new report found. The rise in obesity could push up medical costs by $23.8 billion.

But screw worrying about weight. Taste of Belgium (writer’s note: best restaurant in the land) is thinking about expanding.

In other restaurant news, it seems Chick-Fil-A may stop its anti-gay donations. Maybe Kermit and friends will be forgiving.

The full footage for Mitt Romney’s controversial comments at a May 17 fundraiser has become available here. The footage shows why Romney prefers to be dishonest most of the time. More importantly, Romney’s comments about Obama voters are not accurate. The Onion, a satirical newspaper, has an explanation for why Romney insists on unleashing gaffe after gaffe.

One astrophysicist says there is no such thing as time.

 
 
by German Lopez 12.03.2012
Posted In: News, Budget, County Commission, Stadiums at 01:06 PM | Permalink | Comments (1)
 
 
greg hartmann

Hartmann Considers Reducing Property Tax Rollback

Board president still unsure of how he'll vote; Portune's sales tax increase still on the table

The Hamilton County Board of Commissioners held a public meeting today to discuss options for balancing the stadium fund. Commissioner Todd Portune, the lone Democrat on the board, on Nov. 28 proposed a 0.25-percent sales tax hike. At the meeting, Board President Greg Hartmann, a Republican, suggested reducing the property tax rollback by 50 percent for two years, but he said he was unsure which way he would vote.

Portune also gave ideas for possible adjustments to his sales tax proposal. He said commissioners could “sunset” the sales tax hike, essentially putting an expiration date on the tax increase. He also would like to see the sales tax hike reviewed on a regular basis to ensure taxpayers aren't being burdened longer than necessary. The idea behind possible time limits for both proposals is new revenues, perhaps from an improving economy or Cincinnati's new casino, could make changes unnecessary in the long term.

If anything came from the meeting, it’s that none of the commissioners like the position they’re in. Commissioner Chris Monzel, a Republican, said he had been placed “between a rock and a hard place.” Hartmann echoed Monzel, saying it was an “unenviable position.” Despite being the one to propose the hike, Portune said, “We’re left with two options that none of us like at all.”

Commissioners mostly repeated previous arguments during most of the meeting. Hartmann continued saying he was unsure how he would vote, but he said the two options presented are the only options left. He called Portune's plan “bold.

Portune claimed the sales tax hike was more equitable because it spreads out the tax burden to anyone who spends money in Hamilton County, including visitors from around the Tristate area. In contrast, eliminating or reducing the property tax rollback would place the burden of the stadium fund exclusively on residential property owners in Hamilton County.

The property tax rebate and sales taxes are both regressive, meaning they favor the wealthy more than the poor. In simple terms, as income goes down, spending on goods and services take bigger bites out of a person’s income. A sales tax makes that disproportionate burden even larger.

One analysis from The Cincinnati Enquirer found the wealthy made more money from the property tax rebate than they were taxed by the half-cent sales tax raise that was originally meant to support the stadium fund. For a previous story covering the stadium fund, Neil DeMause, a journalist who chronicled his 15-year investigation of stadium deals in his book Field of Schemes, told CityBeat the stadium fund’s problems stem from the county government making a “terrible deal” with the Reds and Bengals.

Monzel said he will continue to try to find alternatives to raising taxes. On Nov. 28, Monzel told CityBeat he would rather keep the stadium fund balanced for one year with short-term cuts, including a cut on further investments in The Banks development, before raising taxes. In the long term, Monzel says commissioners could see if revenue from the new Horseshoe Casino and a possible deal involving the University of Cincinnati using Paul Brown Stadium would be enough to sustain the stadium fund.

The commissioners will vote on the proposals on Dec. 5.

 
 
by German Lopez 12.10.2012
Posted In: Privatization, News, Budget, Courts, Economy, Casino at 09:05 AM | Permalink | Comments (0)
 
 
city hall

Morning News and Stuff

Parking privatization deal reached, rape flier case could be unsealed, casino revenue drops

The city of Cincinnati and its largest city employees union have reached a deal regarding the privatization of the city’s parking assets. Under the deal’s terms, the city will give raises and not lay off anyone for three years, but only if the city’s parking assets are privatized. However, the head of a Clifton community group is still not happy with the privatization plan. He says the plan is bad for business because it limits the amount of affordable parking in the area. But would laying off 344 city employees be better for business?

The identity of the Miami University student who put up the infamous “Top Ten Ways to Get Away with Rape” flier may soon be revealed. The Ohio Supreme Court will decide by Dec. 14 whether the case should be unsealed and open to public view. Robert Lyons, the Butler County part-time judge who sealed the case, has faced scrutiny in the past few months for conflicts of interest regarding drinking-and-driving cases.

Revenue from casinos in Toledo and Cleveland is dropping. The numbers paint a bad picture for Cincinnati and Hamilton County officials expecting budget problems to be solved by casino revenue.

A proposal mandating drug testing for welfare recipients in Ohio resurfaced last week. Republican legislators claim the requirement will save the state money, but a similar proposal in Florida added to budget woes as the state was forced to pay for drug tests.

Ohio’s ultra-wealthy population is growing. About 1,330 Ohioans are worth $30 million or more, an increase of 2 percent since 2011, according to a report from Wealth-X. The news could shape Gov. John Kasich’s plan to cut the income tax using revenue from a higher oil-and-gas severance tax, perhaps encouraging state officials to make the cut more progressive.

Gov. Kasich is ending the practice of giving so many tax credits to keep businesses in Ohio. The move could potentially cost the state jobs as businesses move to other areas with bigger, better incentives, but state officials and the business community don’t seem too worried for now.

If the Ohio government agencies were forced to cut their budgets by 10 percent, the results would not be pretty. The Ohio Department of Rehabilitation and Correction would have to close prisons, and the Ohio Department of Natural Resources would have a tougher time enforcing new regulations on fracking.

Ohio’s exotic animal law is facing a challenge in federal court today. Exotic animal owners claim the law violates their First Amendment and property rights by forcing them to join private associations and give up their animals without compensation. They also do not like the provision that requires microchips be implanted into the animals. The Humane Society of the United States is defending the law, which was passed after a man released 56 exotic animals and killed himself in 2011.

An Ohio court said a business tax on fuel sales must be used on road projects.

Ohio gas prices are still dropping.

The cure for leukemia could be a modified version of the AIDS virus.

 
 
by German Lopez 06.27.2013
Posted In: News, Budget, Taxes at 12:14 PM | Permalink | Comments (0)
 
 
cover-kasich-2

Report: State Budget Tax Plan Favors Wealthy

Top 1 percent to get $6,083 tax cut

An analysis released June 26 found Ohio’s top 1 percent would get the biggest breaks from the tax plan included in the final version of the two-year state budget, while the state’s poorest would pay more under the plan.

The analysis, conducted by the Institute on Taxation and Economic Policy for public policy think tank Policy Matters Ohio, shows the tax plan’s slew of tax cuts and hikes balance out to disproportionately favor the wealthy in terms of dollars and percents.

On average, the top 1 percent would see their taxes fall by $6,083, or 0.7 percent, under the plan. The next 4 percent would pay $983, or 0.5 percent, less in taxes.

Meanwhile, the bottom 20 percent would pay about $12, or 0.1 percent, more in taxes. The second-lowest 20 percent would see their taxes go down by $5, rounded to 0 percent. The middle 20 percent would see a tax cut of $9, which is also rounded to 0 percent.

Policy Matters criticizes the tax plan, claiming the revenue should go to other programs, not tax cuts.

“Rather than approving a tax plan that will further shift Ohio’s tax load from the most affluent to low- and middle-income residents, we should direct those dollars into needed public services,” said Zach Schiller, Policy Matters Ohio research director, in a statement. “That includes restoring support for local governments and schools, and bolstering human services, from foodbanks to child care.”

Michael Dittoe, spokesperson for Ohio House Republicans, says the tax plan is supposed to provide an economic boost to almost everyone, not any specific group.

“The tax plan is going to provide an overall tax cut for nearly all Ohioans,” he says. “What this plan intends to do is not disproportionately favor the wealthy at all.”

The broad tax cuts, Republicans claim, should provide a boost to Ohio’s economy that will spur further job growth.

But Schiller argues the tax cut ultimately won’t create jobs: “A 21-percent cut that was approved in 2005 has not kept Ohio’s job market from underperforming that of the country as a whole during and after the last recession.”

The tax plan cuts income taxes for all Ohioans and particularly business owners, but it balances the cuts by hiking sales and property taxes.

Specifically, the budget cuts income taxes for all Ohioans by 10 percent over three years, gives business owners a 50-percent tax break on up to $250,000 of annual net income and creates a small earned income tax credit for low- and middle-income working Ohioans based on the federal credit.

To balance the cuts, the plan raises the sales tax from 5.5 percent to 5.75 percent, increases future property taxes by 12.5 percent and graduates the homestead tax exemption to be based on need, meaning the lowest-income seniors, disabled and widowed Ohioans will get the most out of the exemption in the future.

Most recently, the conference committee added two safeguards for low-income Ohioans: a credit that wipes out income-tax liability for Ohioans making $10,000 or less a year and another $20 credit for those making $30,000 or less a year.

The Policy Matters analysis doesn’t take into account the two changes to property taxes and several other, smaller changes to income and sales taxes, but the rest of the changes, including the conference committee’s recent adjustments, are considered.

The tax plan is part of the $62 billion state budget for fiscal years 2014 and 2015, which passed the Republican-controlled General Assembly today. It's expected Republican Gov. John Kasich will sign it into law this weekend.

Update: Budget bill passed by General Assembly.

Check out all of CityBeat’s state budget coverage:
State Budget's Education Increases Fall Short of Past Funding
State Budget Rejects Medicaid Expansion
State Budget to Limit Access to Abortion

 
 

 

 

 
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