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:
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?
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.
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.
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.
Gov. John Kasich's income tax proposal would disproportionately favor Ohio's wealthiest, an analysis from Policy Matters Ohio and the Institute on Taxation and Economic Policy found.
Specifically, the proposal would on average cut taxes by $2 for the bottom 20 percent of Ohioans, $48 for the middle 20 percent and $2,515 for the top 1 percent.
The proposal "may allow low-income Ohioans to buy a slice of pizza a year, on average," Policy Matters claims. "Middle-income Ohioans could purchase a cheap pizza maker. For the state's most affluent taxpayers, on average it would cover round-trip airfare for two to Italy, with some money left over to pay the hotel bill and buy some real Italian pizza."
Under the model, Kasich's proposal would cut Ohio's income tax rates across the board by 7 percent. The goal is to bring Ohio's top tax rate, which kicks in only for income above $208,500, under 5 percent, as the governor previously proposed.
Although a plurality of Americans oppose tax cuts for the wealthy, Kasich and other Republicans consistently push the tax cuts to help what they call "job creators." In the most recent state budget, Kasich and Republican legislators approved another series of across-the-board tax cuts that disproportionately benefited the state's wealthiest.
In the aftermath, economic indicators from conservative, liberal and nonpartisan analysts show Ohio's economy is consistently among the worst performers in the country.
The story is typical for Ohio: In 2005, the state cut income taxes across the board by 21 percent. Since then, Policy Matters found Ohio to be one of just a dozen states that actually lost jobs.
Other research backs up Policy Matters' findings. In a report analyzing tax cuts for the nation's wealthiest, the Congressional Research Service (CRS) found tax cuts for the wealthy aren't correlated with increased economic growth.
"There is not conclusive evidence, however, to substantiate a clear relationship between the 65-year steady reduction in the top tax rates and economic growth. Analysis of such data suggests the reduction in the top tax rates have had little association with saving, investment, or productivity growth," CRS concluded. "However, the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution."
Meanwhile, Cincinnati's poorest continue to struggle in a vicious cycle of poverty that consumes about 34 percent of the city's population and more than half of the city's children. CityBeat covered poverty and its effects on Cincinnati in greater detail here.
Ohio Treasurer Josh Mandel has returned more than $100,000 in campaign contributions in response to an FBI investigation into 21 donors who had no record of giving to federal campaigns and many appearing to have low incomes. Mandel, a Republican, is running against incombent Democrat Sen. Sherrod Brown. Mandel's campaign treasurer Kathryn Kessler sent a letter to donors explaining that any contributions appearing to be under investigation would be refunded.
From The Toledo Blade:
Although the campaign provided a copy of the letter to The Blade, it would not explain the timing of the decision or how long it has been aware of the federal probe.
The Blade revealed the unusual pattern of contributions in August.
The company's owner, Benjamin Suarez, and 16 of his employees (plus some of their spouses) gave about $200,000 to Mr. Mandel and U.S. Rep. Jim Renacci (R., Wadsworth) last year. Each of those donors gave $5,000, the maximum allowable amount, to one or both candidates.
The Ohio Senate yesterday passed new fracking regulations, and the final version caused some environmental organizations to change their stance on the bill. The Ohio Environmental Council and the Sierra Club had both been neutral on the legislation until changes were made forcing anyone suing over chemical trade secrets to show current or potential harm, according to The Enquirer. The regulations are part of Kasich's new energy bill and easily passed both the Senate and House and is expected to be signed by Kasich soon.
Cincinnati Public Schools says it will apply for the latest available federal education grants, which amount to nearly $700 million. The grants are geared toward helping schools proceed with reform and innovation.
The John Edwards trial has entered day six of deliberations.
United Nations inspectors have reportedly found uranium in Iran enriched beyond the highest levels previously reported. One diplomat said the measure could actually be a measurement error, though the reading could also mean that Iran is closer to producing bomb-grade uranium than previously thought.
Scientists might be one step closer to creating birth control for men after U.K. scientists found a gene used to enable sperm to mature.
Facebook's initial public offering didn't go entirely as expected, and some investors are getting refunds after technical problems and other issues marred the company's first week of trading.
The Reds completed a four-game sweep of the Atlanta Braves last night, winning their sixth in a row and overtaking the St. Louis Cardinal for first place in the NL Central.
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.
Gov. John Kasich’s 2014-2015 budget plan is on the horizon, and it contains “sweeping tax reform,” according to Tim Keen, budget director for Kasich. Keen said the new plan will “result in a significant competitive improvement in our tax structure,” but it’s not sure how large tax cuts would be paid for. Some are already calling the plan the “re-election budget.” Expectations are Kasich’s administration will cut less than the previous budget, which greatly cut funding to local governments and education.
Chris Monzel is now in charge
of the Hamilton County Board of Commissioners. Monzel will serve as
president, while former president Greg Hartmann has stepped down to vice
president. Monzel says public safety will be his No. 1 concern.
City Council may vote today on a plan to build the first freestanding public restroom, and it may be coming at a lower cost. City Manager Milton Dohoney said last week that the restroom could cost $130,000 with $90,000 going to the actual restroom facility, but Councilman Seelbach says the city might be able to secure the facility for about $40,000.
Tomorrow, county commissioners may vote on policy regarding the Metropolitan Sewer District. Commissioners have been looking into ending a responsible bidder policy, which they say is bad for businesses. But Councilman Seelbach argues the policy ensures job training is part of multi-billion dollar sewer programs. Board President Monzel and Seelbach are working on a compromise the city and county can agree on.
The Hamilton County Board of Elections is prepared to refer five cases of potential voter fraud from the Nov. 6 election. The board is also investigating about two dozen more voters’ actions for potential criminal charges.
King’s Island is taking job applications for 4,000 full- and part-time positions.
Ohio may soon link teacher pay to quality. Gov. John Kasich says his funding plan for schools will “empower,” not require, schools to attach teacher compensation to student success. A previous study suggested the scheme, also known as “merit pay,” might be a good idea.
An economist says Ohio’s home sales will soon be soaring.
Debe Terhar will continue as the Board of Education president, with Tom Gunlock staying as vice president.
Equal rights for women everywhere could save the world, say two Stanford biologists. Apparently, giving women more rights makes it so they have less children, which biologists Paul R. and Anne Ehrlich say will stop humanity from overpopulating the world.
Ever wanted to eat like a caveman? I’m sure someone out there does. Well, here is how.