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:
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.”
Happy Election Day! It looks like SB 5 is headed for a big defeat even though Gov. Kasich last night told a bunch of East Side Tea Partiers how cool it would be if Issue 2 passed, while a union representative told opponents of the bill that it was about to get “shoved down the throats of John Kasich and the Republicans.”
The Hamilton County Administrator yesterday said “sorry homeowners, but our stadium deficit will not allow us to offer the tax credit Republicans said would make up for your part of the stadium sales tax.” Commissioners Todd Portune and Chris Monzel today said they're going to include the credit even though they don't know how yet. Hopefully they can figure it out soon so they can work on adding public housing to the suburbs before the county gets sued by the Feds.
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.
Ohio Sen. Sherrod Brown was in Cincinnati yesterday to launch his Small Business Owners for Sherrod group. At the event, Brown touted his small business and job creating credentials and received endorsements from leaders of small businesses, which Brown says are vital to restoring the economy. A letter of endorsement from John Pepper, retired CEO of Procter & Gamble, was read aloud at the event. In the letter, Pepper said, “Brown brings a level of experience and maturity to the office that it demands and that his opponent does not possess.” Brown’s opponent — Josh Mandel — is known to lie from time to time.
A federal judge issued a final ruling yesterday banning the tiny free speech zones at the University of Cincinnati. The zones were declared to be too restricting of constitutional rights to free speech. The ruling is seen as a major victory for student rights.
Ohio Democrats are pushing a bill that would require Gov. John Kasich and every governor after him to go before the Ohio House of Representatives for 45-minute question and answer periods 10 times a year. Local Rep. Denise Driehaus is one of the bill’s co-sponsors.
Move to Amend will host a forum on corporate personhood in Cincinnati. Corporate personhood refers to court rulings that established constitutional rights for corporations. Critics argue the ruling makes corporations too powerful. Move to Amend wants to pass an amendment that would overturn the rulings. The forum will take place at the Mt. Auburn Presbyterian Church on Aug. 29 between 7 and 9 p.m.In response to the ongoing controversy about early voting, Ohio Secretary of State Jon Husted has some advice: deal with it. In a statement yesterday, Husted said, “The rules are set and are not going to change.” It’s doubtful the statement will actually stop criticism, which has been recently leveled at racist remarks from Doug Preisse, chairman to the Franklin County Republican Party and close adviser to Gov. John Kasich.
A poll from the University of Cincinnati shows both the presidential and senatorial races are close. The poll has President Barack Obama three points over opponent Mitt Romney with Obama at 49 percent and Romney at 46 percent, but the poll’s margin of error is 3.4 percent. The senatorial race is even closer: Brown is at 48 percent and Mandel is at 47 percent. Aggregate polling has the presidential race close somewhat close, but the senatorial race is much more in Brown’s favor.Home sales are up in Cincinnati and Northern Kentucky. Median home sale prices are still below where they were a year ago, but the news is a sign the economy could be recovering.
Ohio Attorney General Mike DeWine is suing Larry Foster, a water system seller that works in Cincinnati and Columbus under the names Water's Edge, DC Water Solution and Water Pro, for multiple alleged violations of consumer protection laws. The lawsuit claims Foster did not deliver water systems or, if he did, failed to install them properly or at all.Once again, Ohio tested above the national average in the ACT, a test that measures high school students’ potential ability in college. ACT officials said Ohio is one of the few states notably pushing to improve in math and science.
Nearly two-thirds of Americans can’t name a single Supreme Court justice.How to keep bananas ripe: spray them with recycled shrimp shells.
City Solicitor John Curp rebuked a conservative group that asked him to sue the city of Cincinnati over changes made to the city’s parking lease without City Council's explicit approval. Curp wrote in a letter that the two changes disputed by the Coalition Opposed to Additional Spending and Taxes (COAST) were within the lease’s terms and only made because COAST’s previous lawsuit forced the city to delay leasing its parking meters, lots and garages to the Greater Cincinnati Port Authority. If COAST hadn’t pursued the lawsuit, the city would have been able to continue with the original timetable for the parking lease.
Vice Mayor Roxanne Qualls yesterday unveiled a motion calling for the first expansion of local disclosure and reporting requirements since 1997 that would impose new rules on city officials, lobbyists and contractors and require the city administration to post the disclosed information on the city’s website. Qualls said in a statement that the update is particularly timely because the Metropolitan Sewer District is taking on a federally mandated $3.2 billion, 15-year reworking of the city’s sewers, which will presumably involve many lobbyists trying to get lucrative contracts for businesses they represent.
New poll results from Public Policy Polling (PPP) show Democratic gubernatorial candidate Ed FitzGerald beating Gov. John Kasich 38-35 percent in the 2014 election. Kasich’s approval rating now stands at 42-47 percent, down 10 points from November. Most respondents still seem unaware of FitzGerald, with 62 percent saying they aren’t sure if they have a favorable or unfavorable view of him. PPP is affiliated with Democrats, but the polling firm performed well in the 2012 presidential race and, if anything, favored Republicans with its results.
Hop On Cincinnati is asking the Hamilton County Transportation Improvement District to support a trackless trolley that the group says could live alongside the Cincinnati streetcar. The trolley, estimated to cost $10 million to $15 million, would be similar to the system in Northern Kentucky, and each route would run past major garages to allow people to park before getting on board. If the Hamilton County Transportation Improvement District gives the project approval, it could get federal funding.
Investors are upset with SoMoLend, the crowdfunding incubator that has been targeted by a state investigation with accusations of fraud. Critics of the company say that the allegations could hurt future crowdfunding pursuits and harm the state. Shortly after the charges came to light, the city of Cincinnati announced it would cut ties with SoMoLend, which partnered with the city to connect small businesses and startups with up to $400,000 in loans.
Ohio is the seventh worst state for debt, according to a recent study from NerdWallet.com.
The number of low-income Ohio children in Head Start, the early education program, will drop by more than 1,800 following automatic spending cuts at the federal level. CityBeat previously covered the cuts here.
Ohio’s top waterways watchdog is stepping down from the Ohio Environmental Protection Agency after his boss and Kasich asked him to step down. Kasich was apparently angered by an email in which George Elmaraghy, chief of the Ohio EPA’s division of surface water, told his staff that the coal industry wants
permits that would damage the state’s streams and wetlands and break
state and federal laws.
Various state officials are criticizing a “stand your ground” bill currently sitting in the Ohio legislature. The self-defense law has been scrutinized because of George Zimmerman, a Florida resident who was acquitted of murder in the shooting of unarmed black 17-year-old Trayvon Martin. Many people blame Florida’s “stand your ground” law, which expands self-defense rights, for Martin’s death. Zimmerman’s legal defense team didn’t invoke the law, but the judge involved in the case mentioned it in her jury instructions.
Ohio Attorney General Mike DeWine says some school safety plans would be “useless” during a real shooting because they’re too long and complicated.
Ohio is releasing school report cards this week, but the standards may be biased against income and racial diversity.
Cincinnati-based Macy’s stocks plunged last week, alongside other Cincinnati stocks and the rest of the market.
Renowned “Star Trek” actor George Takei will lead Cincinnati in the Chicken Dance at Oktoberfest this year.
Ancient Egyptian jewelry was made from meteorites.
City Council is expected to vote this morning to divert the $4 million for the City Hall atrium project to jumpstart the Music Hall renovation, which has brought the city and arts supporters interested in owning and operating the historic venue closer to a compromise. Council could vote on the renegotiated deal later Wednesday, though details of the lease agreement have yet to be released.
Council is also expected to approve a property tax increase of $10 per $100,000 in valuation to fund capital projects such as a new West Side police station and additional road paving.
Today’s Hamilton County Transportation Improvement District meeting will include a presentation about the Brent Spence Bridge that will probably include polls.
Gov. John Kasich today will sign a human trafficking bill that makes the crime a first-degree felony rather than second-degree and includes funding to help victims.
The U.S. Supreme Court on Thursday will rule on President Obama’s health care law.
Obama and Biden are still jamming Romney up on his outsourcing history.
A Walgreens store and other pharmacies in Washington, D.C. are offering free HIV tests to make diagnosing the disease more convenient and to increase awareness.
College football has approved a four-team playoff to determine its national championship rather than the computer-human two-team plan that has faced scrutiny over the years. The new format will start in the 2014-15 season.
Former Ohio governor Ted Strickland will not run for governor in 2014. In a statement released today, the Democrat who previously served four years as governor did not give a reason for why he won’t run. But he did promise his wife and him will “continue to be politically active private citizens.” Strickland also touted his accomplishments as governor, including energy, health care, social services and property tax reform. In September, Strickland faced criticism from the left for pushing for the Democratic platform to include a mention of God and a proclamation that Jerusalem is the capital of Israel. The platform amendment contradicts decades of U.S. foreign policy.
Hamilton County wants an efficiency review of the Metropolitan Sewer District. Republican Commissioner Chris Monzel ordered the review. He says he expects “things at the Metropolitan Sewer District are being managed and operated in a highly efficient and effective manner,” but he wants to make sure. MSD is currently taking part in a multi-billion dollar, federally mandated upgraded system. CityBeat wrote about MSD’s green initiatives here.
Findlay Market might soon host Cincinnati’s first freestanding restroom. If it goes well, it could be the start of a much bigger city-wide project, and freestanding restrooms will be built all around downtown and Over-the-Rhine. The test facility is being touted by Councilman Chris Seelbach and other city officials as they seek to provide better access to restrooms throughout the city.
Rep. Peter Beck, a Republican from Mason, is facing a possible ethics investigation from the Ohio House of Representatives. The controversy was prompted by a recently filed lawsuit, which alleges Beck participated in a fraud that cheated investors out of more than $1.2 million.
Some local educators are supporting the use of seclusion rooms in Ohio. The rooms, which are enclosed spaces used to calm or restrain children who become violent, have come under criticism after an investigation from StateImpact Ohio and The Columbus Dispatch found the rooms were being abused for the convenience of staff. Ohio does not currently regulate the use of seclusion rooms, but that is likely to change in an upcoming Ohio Board of Education meeting.
On the bright side, Ohio has the 10th best education laws, according to a study from StudentsFirst. Overall, Ohio got a C-, making it one of the 12 states to get a B or C. No state received an A. StateImpact Ohio has more on the grade here. State officials probably understand how I felt when I dropped out of a college history class because the professor was too strict of a grader. Then again, state education systems are probably more important than Colonial History 101.
The Blue Wisp, home of the greatest spinach-and-artichoke dip in the universe, is looking to renegotiate its lease. Over the holidays, restaurant hero and Blue Wisp manager Ed Felson told customers his jazz-themed restaurant and club is having financial problems.
The most emailed phrase while committing fraud at work is “cover up.”
One major problem with prolonged space missions: Humans become lazy and sleepy. It seems like being an astronaut isn’t different from any other job. Who can we rely on when aliens finally invade?
Democratic gubernatorial candidate Ed FitzGerald told Outlook Columbus in a May 17 interview that he supports same-sex marriage, drawing a strong contrast to Republican opponent Gov. John Kasich, who is running for re-election in 2014.
“I believe in full equality for all Ohioans, and that includes the LGBT community, and that includes issues not just related to marriage, but also employment and housing,” FitzGerald told the magazine, which focuses on LGBT issues.
He added, “If it’s on the ballot, I’m going to vote for it. If something comes across my desk when I’m governor, I’m going to sign it.”
FitzGerald's position puts him in opposition to Kasich, who previously reinforced his opposition to same-sex marriage and civil unions after implying support for same-sex civil unions in an interview with a local TV news station
"The governor’s position is unchanged," wrote Kasich spokesperson Rob Nichols in a March 21 email to CityBeat. "He opposes gay marriage and opposes changing Ohio’s Constitution to allow for civil unions. He’s opposed to discrimination against any Ohioan and, while he may have used the term ‘civil union’ loosely in this instance, he recognizes the existing rights of Ohioans to enter into private contracts to manage their personal property and health care issues."
Ohio and the rest of the nation have been moving toward supporting same-sex marriage in the past few years. A poll from The Washington Post in September 2012 found about 52 percent of Ohioans support same-sex marriage, and only 37 percent are against it, with a margin of error of 4.5 points.
FreedomOhio, a group advocating for same-sex marriage, is currently gathering signatures and could place the issue on the Ohio ballot as early as 2013 ("The Evolution of Equality," issue of Nov. 28).
"FreedomOhio thanks Mr. FitzGerald for his support of Marriage Equality and Ohio's Freedom to Marry and Religious Freedom amendment. FreedomOhio asks Governor Kasich to join Mr. FitzGerald and the majority of Ohioans who support the amendment that provides Strong Family Security while also Protecting the Religious Freedom of all houses of worship," wrote Ian James, co-founder of FreedomOhio, in an email to CityBeat. "We are pleased to count Mr. FitzGerald as a supporter of this important 46-word amendment."
Update: This story was updated with a comment from Ian James, co-founder of FreedomOhio.