by German Lopez
Posted In: News
at 12:14 PM | Permalink
Top 1 percent to get $6,083 tax cut
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
by German Lopez
Posted In: Budget
at 10:13 AM | Permalink
Reform may come later this year
Politicians and economists often talk favorably about simplifying the tax code, but a June 17 report from Policy Matters Ohio found Ohio’s tax code will remain complicated under the budget plan being discussed in the Ohio House and Senate.Meanwhile, a spokesperson for House Republicans says reform will come through separate bills later this year.
The Policy Matters report, titled “Breaking Bad: Ohio tax breaks escape
scrutiny,” found the state’s tax code will include 129 tax exemptions,
deductions and credits if the Senate’s 2013-2014 budget is approved —
one more tax break than the previous biennium. Altogether, the Ohio
Department of Taxation estimates the tax breaks will cost Ohio nearly $8
billion in fiscal year 2015.
The Senate budget repealed two tax breaks, but it
simultaneously added or expanded a dozen, according to the report. Among
the additions was a 50-percent income tax deduction for business owners worth up to $375,000 of annual income, which Policy Matters says will
largely benefit passive investors, one-man firms and partnerships that
will not add jobs.
Policy Matters found 44 tax breaks have been eliminated
since 2003 because of the elimination of corporate franchise and estate
taxes. But in that time frame elected officials have added and expanded
so many new tax breaks that there are now only nine less tax breaks than
there were in 2003.
The report claims many of the tax breaks are wasteful. One
example: An almost $20 million a year exemption for pollution-control
equipment purchased by utility companies. The report says most of the
purchases are already mandated by the state government, which means the
state is effectively paying companies to follow the law and regulations.
The report ultimately calls for thorough, regular reviews of the state’s tax breaks.
“It is time for the General Assembly to scrutinize
spending through the tax code as it does other state expenditures,” said
Zach Schiller, report author and research director at Policy Matters
Ohio, in a statement.
At the beginning of the 2014-2015 budget process, House
Speaker William Batchelder (R-Medina) and Senate President Keith Faber
(R-Celina) said one of their goals was to simplify the tax code. Mike
Dittoe, spokesperson for Batchelder and Ohio House Republicans, says
such reform will now be pursued in separate bills, probably later in the
summer or fall.
“The budget is obviously a very labor-intensive process
and there’s lots of moving parts,” he says. “A lot of members of the
House and Senate just want to make sure that things get done right.”
Instead of simplifying the tax code in the budget,
Republican legislators are focused on passing tax cuts. The House and
Senate are currently working on reconciling their separate tax plans by
merging and downsizing them. The joint plan is “likely to be unveiled in
its entirety here over the next few days,” Dittoe says.
The House approved a 7-percent across-the-board income tax
cut in its budget plan. But the Senate cut the House’s tax proposal and
approved a tax deduction for business owners instead. Supporters say the tax cuts will spur the economy and create jobs, while opponents claim the plans are misguided and will fail to lift the lower and middle classes.
by German Lopez
Posted In: News
at 09:13 AM | Permalink
Texting while driving eludes police, parking lease stalled, Ohio tax code still complex
Even though it’s now illegal under local and state law, texting while driving often eludes punishment
in Greater Cincinnati. The Hamilton County Sheriff’s Department has
issued no tickets so far to vehicular texters, while the Cincinnati
Police Department has given out 28, with only four going to teenagers.
Although almost everyone acknowledges the dangers of texting while
driving, police say it’s very difficult to catch texters in the act,
especially since most of them claim they were just making phone calls.
Otto Budig, board chairman of the Greater Cincinnati Port Authority, apparently told The Cincinnati Enquirer that the Port Authority won’t sign the parking lease
until it gets assurances about city funding. City Council considered pulling $100,000 from the Port
Authority while putting together the budget for fiscal year 2014. Now,
Budig says the Port Authority wants some sort of financial assurance,
perhaps as part of the parking lease, that the city won’t threaten
future funding. The city announced Tuesday it had signed the lease, but some opponents, including Councilman P.G. Sittenfeld, are still looking for ways to repeal the plan.
A Policy Matters Ohio report found the state’s tax code remains complicated
under the Ohio Senate budget plan and the budget actually added tax breaks, despite earlier promises of simplification from House and Senate leaders. Meanwhile, Mike Dittoe, spokesperson
for Ohio House Republicans, says the General Assembly will take up tax
reform later in the year. The Ohio Department of Taxation says the tax breaks will cost Ohio nearly $8 billion in fiscal year 2015, and Policy Matters says many of the exemptions, deductions and credits are wasteful.
Commentary: “Republican Medicaid Opposition Ignores Ohio’s Best Interests.”
JobsOhio topped a ranking
from Investigative Reporters and Editors (IRE) that looks at government
agencies’ “unrelenting commitment to undermining the public's right to
know.” IRE mocked JobsOhio and the state Republicans for making it
increasingly difficult to find out how the agency uses its public funds.
Democrats, including gubernatorial candidate Ed FitzGerald, have also criticized
Republicans for blocking a public audit of JobsOhio, which was
established by Gov. John Kasich and Republican legislators in 2011 to
eventually replace the public Ohio Department of Development. JobsOhio’s
supporters argue the agency’s privatized, secret nature allows it to move
at the “speed of business” to better boost the economy.
The Cincinnati Museum Center is looking to ask Hamilton County residents to renew its operating levy
in May 2014, even though the museum promised in 2009 that it wouldn’t
do so. The museum argues circumstances have changed, with Union Terminal
crumbling and in need of about $163 million in repairs. When the museum
originally made its promise against more operating levies, it was
expecting to make repairs through a capital levy, but Hamilton County
commissioners dismissed that idea. Hamilton County commissioners will
have to approve the operating levy before it goes on the ballot.
An Ohio bill would ban anyone under the age of 18 from tanning at a salon
unless a doctor gives permission for medical reasons. This is the third
time Ohio legislators have proposed measures against indoor tanning in recent years.
Personhood Ohio, the anti-abortion group trying to ban abortions in Ohio by defining life as beginning at conception, is fundraising by selling assault rifles.
Here is a map showing how green Earth is in the most literal terms.
We now have an explanation for why everyone is so nice and loving to CityBeat’s Hannah McCartney: A study found people are mostly mean to their unattractive coworkers.
Got questions for CityBeat about anything related to Cincinnati? Submit your questions here and we’ll try to get back to you in our first Answers Issue.
CityBeat is looking to talk to convicted drug offenders
from Ohio for an upcoming cover story. If you’d like to participate or
know anyone willing to participate, email firstname.lastname@example.org.
by German Lopez
Posted In: News
at 10:52 AM | Permalink
Seventy percent of schools cut budgets for 2012-2013 school year
released April 29 found Ohio schools are making cutbacks in response to
budget cuts previously approved by Republican Gov. John Kasich and the
Republican-controlled Ohio legislature.
The 15-question survey from left-leaning Policy Matters
Ohio, which received responses from 42 percent of the state’s K-12
school districts in 82 counties, found 70 percent of Ohio schools made
cuts for the ongoing 2012-2013 school year, 82 percent cut positions, 84
percent reduced or froze compensation and 62 percent expect budget
shortfalls next year if the state doesn’t increase funding.
“Long-term investment in education is the best way to
build opportunity for Ohioans,” said Piet van Lier, education researcher
at Policy Matters Ohio, in a statement. “Instead, Ohio’s cuts to school
funding have forced schools to get rid of staff, reduce pay, cut
materials and increase class sizes.”
The survey found the cuts have led to a reduction in
education quality, with 43 percent of Ohio schools reporting larger
class sizes, 23 percent reporting less course options, 57 percent
cutting materials, supplies, textbooks or equipment for the 2012-2013
school year and 22 percent reducing extracurricular activities or introducing pay-to-play for them.
Policy Matters and Innovation Ohio, another left-leaning
think tank, previously found Kasich’s 2012-2013 budget slashed education
funding by $1.8 billion.
In his latest budget proposal, Kasich proposed increasing
education funding, although in a way that disproportionately benefited
wealthier school districts (“Smoke and Mirrors,”
issue of Feb. 20). Since then, the Ohio House passed its own budget
bill that rejects Kasich’s proposal and increases overall school funding
in a more equitable way.
But Policy Matters says the increases aren’t enough. Its analysis
found school funding is failing to keep up with inflation, with 2015
funding projected to fall $1.2 billion short of what funding would have
looked like if it had kept up with 2006’s inflation-adjusted levels.
“Neither Gov. Kasich nor the Ohio House have adequately
addressed the needs of Ohio’s schools in their budget proposals,” van
Lier said in a statement. “The Senate must now lead the way in crafting a
stronger, more predictable funding system for the next two years and
Cincinnati Public Schools said state funding cuts were one reason the school district needed Cincinnati voters to approve a school levy in 2012 (“Battered But Not Broken,” issue of Oct. 3). The levy, known as Issue 42, passed in the November election.Innovation Ohio previously found
Kasich’s budget cuts have led to levies all around the state,
effectively increasing local taxes by $1.3 billion since May 2011.
“By cutting taxes primarily for the wealthy at the state
level, Gov. Kasich and the Republican-controlled legislature have merely
pushed the need for tax increases down to the local level,” said
Janetta King, president of Innovation Ohio, in a statement.
Kasich spokesperson Rob Nichols previously told CityBeat
that the cuts were necessary to balance the budget, as required by
state law. “The reality is we walked into an $8 billion budget deficit,”
he said. “We had to fix that.”
by German Lopez
Posted In: News
at 03:34 PM | Permalink
Liberal, conservative think tanks warn of bad signs in state’s economy
It’s one issue Ohio’s leading conservative and liberal
think tanks seemingly agree on: The “economic miracle” often touted by Gov. John Kasich is not really happening.
The bleak economic news has been highlighted by recent
reports from the right-leaning Buckeye Institute for Public Policy
Solutions, which supports little government intervention in the economy,
and the left-leaning Policy Matters Ohio, which focuses on policies
that can benefit low- and middle-income Ohioans.
The March “Ohio by the Numbers” report from the Buckeye
Institute did acknowledge that Ohio has a lower unemployment rate than
the national average, but the report was particularly hard on Ohio’s
lacking private sector job growth. It pointed out the state lost 16,800
private sector jobs in February, ranks No. 27 in the nation for private
sector job growth since January 2010 and ranks No. 47 for private sector
job growth since January 1990.
Policy Matters’ March report was similarly harsh: “Since the end of the
recession, Ohio has added 133,700 jobs, growing at a rate of 2.7
percent. But that growth leveled off in the second half of 2012, and the
reported zigzag of the last two months means that Ohio has only added
2,700 jobs over the past year, growing at a very weak 0.1 percent.”
The news may come as a surprise to those who have been
reading seemingly positive job news in recent months. Policy Matters
places the problem on the inherent volatility in job reports, which are
based on household surveys: “This volatility should serve as an
important reminder: Monthly numbers are preliminary and will likely be
revised, so it is unwise to make too much over the month-to-month
changes. Longer-term trends provide a more accurate gauge of the state’s
While they agree on the problem, the two think tanks disagree on the causes and solutions.
Greg Lawson, policy analyst at the Buckeye Institute, says
the biggest problem is Ohio’s tax system. In this area, he points out
three major problems: higher income tax rates than other states, an
unusual amount of municipalities in Ohio with income taxes and
complicated filing for individuals and businesses.
“You find nowhere else in the entire country a situation
in which someone has to file multiple income tax forms ... for different
jurisdictions they work in,” he says, citing the different tax rates
and credits someone working in multiple municipalities might have to
deal with. “That creates a drag on the efficiency of being able to set
As far as tax cuts are concerned, another report
from Policy Matters found a series of tax cuts passed by the Ohio
General Assembly in 2005 had little impact on the state’s economic
growth. The report found Ohio experienced job losses while the rest of
the country grew, and not a single Ohio sector outpaced national
performance. The report concluded, “State economies are complicated and
there are many reasons why Ohio’s job growth is lagging. However, it is
clear that the 2005 tax cuts did not bring about the promised job
growth. There is no reason to think that further tax cuts will, either.”
Instead, Policy Matters has focused on austerity, which
led to the public sector job cuts outlined in Policy Matters’ March
report: “A private-sector gain of 16,900 jobs has been nearly erased by
the 14,200 jobs lost in the public sector. Most of those public job
losses happened at the local level.”
Indeed, federal sequestration has already caused some damage in Ohio, and local government funding cuts approved by Kasich have also forced local governments to cut back (“Enemy of the State,” issue of March 20).
0 Comments · Wednesday, April 24, 2013
The budget bill currently working through
the Republican-controlled Ohio legislature would cut taxes in a way
that favors the wealthy, according to a new analysis.
by German Lopez
Posted In: News
at 09:00 AM | Permalink
House budget bill may suppress student voters, tax plan favors wealthy, police chief may go
An amendment in the Ohio House budget bill last week would make it so universities have to decide
between providing voting information to students or retaining millions
of dollars in out-of-state tuition money. The amendment would make it so
universities have to classify students as in-state — a classification
that means lower tuition rates — when providing documents necessary for
voting. Republicans claim the measure is “common sense” because anyone
voting for Ohio’s elections should be an Ohio resident. But the
amendment has provoked criticism from Democrats and universities alike,
who say universities are being thrown into the middle of a voter
An analysis from left-leaning Policy Matters Ohio found
the tax plan currently working through the Republican-controlled Ohio
legislature favors the wealthy.
The analysis also claimed there’s little evidence the across-the-board
tax cuts suggested would significantly help Ohio’s economy.
The plan still needs to be approved by the Republican-controlled Ohio
Senate and Republican Gov. John Kasich.
Council members are asking Cincinnati Police Chief James Craig to remain in Cincinnati
instead of taking a job in Detroit, but City Manager Milton Dohoney Jr.
didn’t seem convinced that much can be done. Dohoney said Craig’s
hometown is Detroit, a city that has suffered in recent years as the
local economy has rapidly declined.
Democratic Cuyahoga County Executive Ed FitzGerald is running for governor, and he will make Cincinnati one of his first stops
for his campaign kick-off tour. FitzGerald is challenging Republican
Gov. John Kasich in 2014, who has held the governor’s office since 2010. A recent poll found Kasich in a comfortable position with a nine-point lead on
FitzGerald, but many respondents said they don’t know enough about
FitzGerald to have an opinion on him.
Greater Cincinnati home sales hit a six-year high in March,
with 2,190 homes sold. The strong housing market, which is recovering
from a near collapse in 2008, is widely considered by economists to be a
good sign for the overall economy.
But Ohio’s venture capital investments dropped to a two-year low, according to data from PricewaterhouseCoopers and the National Venture Capital Association.
The Ohio EPA and Hamilton County Recycling and Solid Waste District are partnering up to provide a $250,000 grant to help purchase equipment to screen, clean and sort glass — an important part of the recycling industry.
Councilman P.G. Sittenfeld is asking Cincinnatians to
forgo lunch on April 24 to take part in the Greater Cincinnati Day of
Fasting. The event will let participants “experience a small measure
of the hunger that is a part of many people’s daily lives,” according to
a press release from Sittenfeld’s office. Participants are also being
asked to donate money to the Freestore Foodbank. A ceremony for the
event will be held on April 24 at noon in Fountain Square.
The U.S. Senate is moving toward approving bill that would allow states to better enforce and collect online sales taxes.
Mars One is calling all applicants for a mission to colonize Mars in 2023.
The sport of the future is here: combat juggling:
by German Lopez
Posted In: News
at 02:57 PM | Permalink
Policy Matters finds reworked plan gives biggest bonuses to top 1 percent
The budget bill currently working through the Republican-controlled Ohio legislature would cut taxes in a way that disproportionately favors the wealthy, according to a new analysis from Policy Matters Ohio, a left-leaning policy group.
The budget bill, which was passed the Republican-controlled Ohio House with a 61-35 vote on April 18, would cut state income taxes for all Ohioans by 7 percent.
Policy Matters analyzed the result for each tax bracket: For the top 1
percent, the tax plan would cut $2,717 in taxes on average. For the
middle 20 percent, it would amount to a $51 cut on average. For the
bottom 20 percent, it would result in $3 on average.The report explains the disproportionate gains are caused by the structure behind Ohio’s tax system: “Ohio has a graduated income tax, so people pay more on higher levels of earnings. Because of that, across-the-board tax cuts give much more money to the wealthiest Ohioans. This reinforces inequality and adds to the unfairness of the state and local tax system, which is weighted in favor of upper-income taxpayers when all state and local taxes are taken into account.”
Zach Schiller, research director at Policy Matters, says
the Ohio House tax plan will also
have little impact on Ohio’s economy.
“Since the 21-percent reduction in state income taxes
approved in 2005, Ohio’s economy has underperformed the nation,”
Schiller said in a statement. “There is little reason to believe that
another round of income-tax cuts will produce a different result.”
Michael Dittoe, spokesperson for Speaker of the House William Batchelder and Ohio House Republicans, wrote in an email to CityBeat
that there are still two months for the state government to finalize
the details of the tax plan as it works through the Ohio legislature.The budget bill still has to be approved by
the Republican-controlled Ohio Senate. If changes are made to the Ohio
House proposal, the Ohio Senate bill would have to be concurred by the Ohio House. It would then need to
be signed by Republican Gov. John Kasich, who could line-item veto
certain parts of the bill or veto the entire bill.
“It’s disappointing to see that Policy Matters Ohio would
begrudge an income tax cut which will benefit all Ohioans,” Dittoe
wrote in the email. “Of the seven citations in their report, ironically, five of them
refer back to previous ‘studies’ issued by none other than Policy
Matters Ohio. Before issuing a study of this magnitude, it may be wise
for them to cite something other than themselves to make the report more
Policy Matter’s findings were gathered through the
independent Institute on Taxation and Economic Policy, which plugs the numbers into its own model to gauge the impact of tax cuts on different
The resulting numbers do little to deflate concerns raised
by Policy Matters about Kasich’s tax proposal, which was a much larger
20-percent across-the-board income tax cut. Policy Matters found
Kasich’s tax plan also favored the wealthy, except the overall plan
actually raised taxes on the state’s poorest because it included an
expansion of the sales tax that the Ohio House rejected (“Smoke and Mirrors,” issue of Feb. 20).
by German Lopez
Posted In: News
at 12:35 PM | Permalink
Policy Matters Ohio releases county-by-county map detailing tax credit
As part of an effort supporting a state earned income tax credit (EITC), Policy Matters Ohio unveiled an interactive map today that shows the potential benefits to taxpayers in different counties.For Hamilton County, about 19 percent of tax-filing households would qualify for the program. A 10-percent EITC would return about $15.6 million to households in Hamilton County, or about $225 on average for each qualifying filer. A 20-percent EITC would return about $31.2 million to Hamilton County, with each qualifying filer getting about $451 on average.EITC is a tax credit that goes to working families, typically favoring low- and middle-income earners with children. It is already used by the federal government and several states to progressively reward employment.CityBeat previously covered Policy Matter's efforts and how EITC could replace Gov. John Kasich's tax proposals, which would expand the sales tax and cut income taxes by 20 percent across the board, here.Since then, Ohio House Republicans have rejected most of Kasich's tax proposals, instead downsizing the plan to a 7-percent across-the-board tax cut with no sales tax expansion.Here is the interactive map, courtesy of Policy Matters:Learn About Tableau
Gov. John Kasich says his new budget offers a fairer tax system and more money for schools, but it’s really just more of the same
0 Comments · Wednesday, February 20, 2013
In the big public push for his 2014-2015
budget proposal, Republican Gov. John Kasich has often sounded
progressive. But deeper analyses of Kasich’s budget found that the
governor was likely off with some of his claims.