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.
Facing tight budgets, Ohio schools, including Cincinnati Public Schools (CPS), are considering open enrollment.
The move would open school doors to neighboring communities. It was
previously considered by CPS a decade ago, but the plan didn’t have
enough support from the district’s board. It might now.
Next year could be challenging for Ohio schools. Butler County schools will begin the year by implementing a transition to the Common Core Curriculum, new evaluations for teachers and a new method of rating and grading schools. The state is also expected to change the school funding formula.
seasonally unadjusted unemployment rate remained relatively flat at 6.9
percent in November, according to data from the Ohio Department of Jobs
and Family Services. The city’s unemployment did not tick up or down
from the 6.9 percent rate in October, but about 1,300 dropped out from
the civilian labor force as it shrank from 145,600 in October to 144,300
in November. Hamilton County also remained flat at 6.3 percent as 3,500
left the labor force. Greater Cincinnati ticked up to 6.2 percent from
6.1 percent, with about 6,900 leaving the labor force between October
and November. In comparison, the state had a seasonally unadjusted rate
of 6.5 percent and nation had a seasonally unadjusted rate of 7.4
percent in November. Unemployment numbers are calculated through a
household survey. The unemployment rate gauges the amount of unemployed
people looking for work in contrast to the total civilian labor force.
Since the numbers are derived from surveys, they are often revised in
later months. Federal and state numbers are typically adjusted for
Police in Kentucky are now using playing cards to catch suspects. Trooper Michael Webb says the effort has helped crack three out of 52 cases so far. That may not seem like a lot, but Webb puts it in perspective: “Two of the cases were double homicides so that's four families that have gotten closure and have had some kind of ability to deal with the situation. The third one was a single murder and obviously that family has been able to have closure. So we've got five families that have been able to have closure as a result of this initiative.”
Another casualty of the fiscal cliff: milk. It turns out milk prices could soar to $7 a gallon as Congress fails to adopt a farm bill. President Barack Obama and legislators are expected to discuss a fiscal cliff deal today.
As some companies shift to social media, Facebook may topple CareerBuilder for job opportunities.
On Christmas Day, 17.4 million smart devices turned on for the first time. In the first 20 days of December, only 4 million Android and iOS devices were turned on.
What does 2013 hold for science and technology? Popular Science takes a look. Expect more supercomputers and less solar activity!
Here is the dorkiest, cutest marriage proposal ever.
Headline: "Stadium tax rebate favors wealthy." Analysis: "No shit." Owners of the county's most-expensive homes reportedly receive more savings from the property tax rollback than they pay in the sales tax increase that was supposed to pay for the sports stadiums. An Enquirer analysis of last year's property tax payout found that the half-cent sales tax increase amounts to a maximum of $192 annually, while some high-value homeowners received tax rebates of $1,175 or more.
• Million-dollar homes account for less than 1 percent of households, yet they received nearly 5 percent of the total rebates — or one out of every $20 paid out.
• One out of four homeowners - those with a home worth $200,000 or more - got $8.8 million in rebates - more than half the total rollback.
• The median Hamilton County homeowner with a property worth $106,700 is eligible to get a $50.15 rebate under the rollback.
• The 132 Hamilton County homeowners with houses worth $2.5 million or more get at least $1,175 apiece.
• Property owners with homes worth $150,000 or less account for nearly six out of 10 households, but collectively they received less than 23 percent of the benefits.
County commissioners have four days to tell the auditor to go ahead and tax homeowners at the previous rate, but Chris Monzel and Todd Portune are up for reelection this year and won't dare change take it away from the powerful rich people.
[Correction: Monzel is not up for reelection.]
Said former commissioner David Pepper:"At its core, the property tax rollback creates a reverse-Robin Hood scheme, where middle-class homeowners and renters are not only the ones paying for the stadium, but also footing the bill for a tax break for high-value property owners. Those high-end property owners are not paying for the stadium at all."
The Ohio Democratic Party is asking both state and federal prosecutors to look into allegations that a major coal company is coercing its employees to donate to political causes against their will.
The ODP on Monday sent letters to U.S. Attorney for the Northern District of Ohio Steven Dettelbach and Acting Cuyahoga County Prosecutor Timothy McGinty asking them to launch a criminal investigation into Ohio-based Murray Energy Corporation.
The letters allege that Murray Energy “may have engaged in a pattern of illegal activity, extorting millions in financial contributions from employees and vendors for Republican candidates running for public office.”
Murray Energy fired back in a Monday statement, saying the allegations “are simply an attempt to silence Murray Energy and its owners from supporting their coal mining employees and families by speaking out against President Barack Obama’s well known and documented War on Coal.”
The allegations stem from an Oct. 4 investigation by left-leaning magazine The New Republic.
The article is based on the accounts of two anonymous former Murray managers and a review of letters and memos to Murray employees. It suggests that employees are pressured into making donations to Republican candidates and contributing to the company’s Political Action Committee.
“There’s a lot of coercion,” one of the sources told the magazine. “I just want to work, but you feel this constant pressure that, if you don’t contribute, your job’s at stake.”
ODP Chairman Chris Redfern told reporters during a conference call that party research found that Ohio political candidates — including all current statewide officeholders — had received almost $750,000 from Murray Energy, its subsidiaries and employees.
Neither Dettelbach or McGinty returned CityBeat calls for comment on any pending investigations.
Murray Energy in its statement called The New Republic biased and radically liberal. The company’s characterization in the article is incorrect and untruthful, according to the statement.
Murray had previously come under fire when Republican presidential candidate Mitt Romney held a campaign event at one of its mines. Some workers claim they were pulled out of the mine early when it closed for the event and forced to attend without pay.
Democratic gubernatorial candidate Ed FitzGerald is calling on Republican Gov. John Kasich to veto a bill that would prevent State Auditor Dave Yost, a Republican, from fully auditing JobsOhio, following months of controversy surrounding the private nonprofit entity.
"I further encourage the Governor to return to negotiations with Auditor Yost, with the explicit goal of establishing an open and transparent process by which the people of Ohio can be sure JobsOhio is spending our tax dollars efficiently, and that the program is doing what it is supposed to be doing: creating Ohio jobs," FitzGerald said in a statement. "The people’s money is the people’s business, and this bill, which slams shut the door on accountability, is simply unacceptable."
Yost claims he can audit JobsOhio's liquor profits, which add up to $100 million a year, and private funds, such as donations.
But the bill effectively defines JobsOhio's liquor profits as private funds that can't be audited by the state
auditor. Under the proposal, Yost could only audit liquor profits and excise taxes that JobsOhio owes to the state, with all other funds effectively deemed private.
JobsOhio was established by Kasich and Republican legislators in 2011 to replace the Ohio Department of Development. The agency's liquor profits come from a lease deal with the
state to run Ohio's liquor operations.
Yost argues the liquor profits are intrinsically public money because the money would be in public hands if JobsOhio wasn't handling operations.
But other Republicans, led by Kasich, say
opening JobsOhio to full audits would slow down the agency, hindering its
ability to quickly react to economic changes and tides. Kasich has often said the private nature of JobsOhio allows it to move at the "speed of business," which he claims fosters stronger economic development in Ohio.
Democrats have pushed back against the notion, saying JobsOhio's private nature only makes it more difficult to hold the state government accountable. With the latest bill, Democrats, who have now taken to dubbing the agency "RobsOhio," say their concerns are being vindicated.
But the bill could have far-reaching effects beyond JobsOhio that would effectively disallow the state auditor to audit privately funded accounts in any institution that receives public funding.
Despite Yost's pleas to involve him in the process, the auditing bill was passed through the Ohio House and Senate in just two days without his input.
Democrats were quick to criticize the bill, asking what JobsOhio has to hide.
Kasich is expected to sign the bill to make it law.
JobsOhio isn't the only privatization scheme pushed by Kasich. He also sold the Lake Erie Correctional Institution, a northeastern Ohio prison, to the Corrections Corporation of America. So far, inmate reports and inspections have largely found deplorable conditions at the Lake Erie facility ("From the Inside," issue of May 29).
While fact checking an interview, CityBeat discovered it will be possible to circumvent the parking plan’s cap on meter rate increases through a multilayer process that involves approval from a special committee, the city manager and the Port of Greater Cincinnati Development Authority. The process adds a potential loophole to one of the city manager’s main defenses against fears of skyrocketing rates, but Meg Olberding, city spokesperson, says raising the cap requires overcoming an extensive series of hurdles: unanimous approval from a board with four members appointed by the Port Authority and one selected by the city manager, affirmation from the city manager and a final nod from the Port Authority. Olberding says the process is necessary in case anything changes during the 30-year time span of the parking deal, which CityBeat covered in detail here.
Democratic mayoral candidate John Cranley launched DontSellCincinnati.org to prevent the city manager’s parking plan, which semi-privatizes the city’s parking assets. The website claims the plan gives for-profit investment companies power over enforcement, guarantees 3-percent rate increases every year and blows through all the money raised in two years. The plan does task a private company with enforcement, but it will be handled by Xerox, not a financial firm, and must follow standards set in the company’s agreement with the Port Authority. While the plan does allow 3-percent rate increases each year, Olberding says the Port Authority will have the power to refuse an increase — meaning it’s not a guarantee.
Arnol Elam, the Franklin City Schools superintendent who sent an angry letter to Gov. John Kasich over his budget plan, is no longer being investigated for misusing county resources after he paid $539 in restitution. CityBeat covered Elam’s letter, which told parents and staff about regressive funding in Kasich’s school funding proposal, and other parts of the governor’s budget in an in-depth cover story.
To the surprise of no one, Ohio’s oil lobby is still against Kasich’s tax plan, which raises a 4 percent severance tax on oil and wet gas from high-producing fracking wells and a 1 percent tax on dry gas.
Local faith leaders from a diversity of religious backgrounds held a press conference yesterday to endorse the Freedom to Marry and Religious Freedom Amendment, an amendment from FreedomOhio that would legalize same-sex marriage in the state. Pastor Mike Underhill of the Nexus United Church of Christ (UCC) in Butler County, Rabbi Miriam Terlinchamp of Temple Sholom, Pamela Taylor of Muslims for Progressive Values and Mike Moroski, who recently lost his job as assistant principal at Purcell Marian High School for standing up for LGBT rights all attended the event. CityBeat covered the amendment and its potential hurdles for getting on the 2013 ballot here.
Vanessa White, a member of the Cincinnati Public Schools board, is running for City Council. White is finishing her first four-year term at the board after winning the seat handily in 2009. She has said she wants to stop the streetcar project, but she wants to increase collaboration between the city and schools and create jobs for younger people.
The Ohio Bureau of Motor Vehicles’ (BMV) policy on providing driver’s licenses to the children of illegal immigrants remains unclear. Since CityBeat broke the story on the BMV policy, the agency has shifted from internally pushing against driver’s licenses for Deferred Action for Childhood Arrivals (DACA) recipients to officially “reviewing guidance from the federal government as it applies to Ohio law.” DACA is an executive order from President Barack Obama that allows the children of illegal immigrants to qualify for permits that enable them to remain in the United States without fear of prosecution.
A survey from the Ohio-Kentucky-Indiana Regional Council of Governments found locals are generally satisfied with roads, housing and issues that affect them everyday. The survey included 2,500 people and questions about energy efficiency, infrastructure, public health, schools and other issues.
Ohio Attorney General Mike DeWine revealed 7,000 Ohioans have received more than $280 million in consumer relief as part of the National Mortgage Settlement announced one year ago. The $25 billion settlement between the federal government and major banks punishes reckless financial institutions and provides relief to homeowners in the aftermath of the 2008 financial crisis.
Ohio received a $3 million federal grant to continue improving the state’s health care payments and delivery programs.
Cincinnati home sales reached a six-year high after a 27-percent jump in January.
CityBeat’s Hannah “McAttack” McCartney interviewed yours truly for the first post of her Q&A-based blog, Cinfolk.
Crows have a sense of fairness, a new study found.
Some Democratic lawmakers want answers from Republican Gov. John Kasich.
A group of Democratic state representatives has put forth a bill that would require Kasich — and every governor after him — to come before the Ohio House of Representatives 10 times per year for 45-minute question and answer sessions where the governor would have to take at least five questions from each side of the aisle.
Rep. Mike Foley, D-Cleveland, is the bill’s sponsor. He did not return CityBeat’s call for comment as of Wednesday afternoon.
Cincinnati Democratic Rep. Denise Driehaus is one of the bill’s co-sponsors. She said Foley had the idea while visiting Canada, where their parliament has a similar procedure.
“I think it’s a great idea where the governor interacts with the legislature and we have the opportunity to question him and really engage on some of the issues and get his opinion on things,” Driehaus says.
She said the Legislature doesn’t currently have a whole lot of opportunity to interact with the governor, except for the State of the State address, but even then they can’t really engage Ohio’s chief executive.
The Ohio Democratic Party has recently filed suit against Kasich for what it says is a failure to comply with open records laws for redacting parts of his public schedules when responding to a public records request.
The ODP has called Kasich opaque and secretive for failing to respond or only partially responding to records requests.
However, Driehaus said the bill isn’t meant to apply only to Kasich, but would apply to every governor after him. She said she didn’t think it was in reaction to her party’s spat with the governor.
“This is much broader and much more forward thinking than that,” Driehaus says.
Opponents of Ohio's new restrictive election law have gotten it postponed until next year at the earliest, with a potential repeal of House Bill 194 in November ending it before it begins.