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News: Internet Sales Tax Back on the Table, Cincinnati Enquirer
Notes: Ohioans are required to pay sales tax on items purchased online. Over 99% of Ohioans fail to pay the sales tax required. With in-state purchases, the retailer collects the sales tax on our behalf, and many people wonder why corporations like Amazon do not do the same thing. As more people switch to online retail, Ohio’s sales tax revenue will continue to decrease. The results will be: 1) Raise the sales tax  for items purchased in stores 2) cut public services or 3) a combination of the two.  In Ohio, we have seen a combination of the two over the past few years. Ohio should continue to look at ways to modernize our revenue system and restore cuts made to community services like schools and public safety. Ohio should not use new revenue for income tax cuts that primarily benefit the wealthiest Ohioans. 

News: Ohio is Going in the Right Direction, Youngstown Vindicator
Notes: Do you agree or not? Governor Kasich makes a pitch that cutting taxes has moved Ohio in the right direction. While trumpeting Lake Erie, Ohio schools, colleges, and neighborhoods, he advocates for more income tax cuts. Ohio cut the income tax by 21% in 2005, and another 10% in 2013. We have tried this strategy, and it has failed for Ohioans. These tax cuts have not stimulated the economy – leaving Ohio with a higher unemployment rate and a slower job growth than other states. Income tax cuts have forced cuts to the programs that the Governor trumpets as successful, and shifted the tax responsibility away from the wealthiest Ohioans and onto the rest of us. 

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News: Kasich seeks more tax cuts to get Ohio moving faster, Cincinnati Enquirer
Notes: Governor Kasich will propose another income tax cut, primarily benefiting the wealthiest Ohioans early next year. Despite research to the contrary, the Governor believes this will create a flood of new investment in Ohio. Our state cut income tax rates in 2005 and again in 2013, and since that time our economy remains stagnant compared to other states. The tax cuts have also forced billions of dollars to be cut from local schools, public safety and social service programs.

Instead of using speculative revenue from a severance tax increase to pay for a tax cut for the wealthiest Ohioans, Ohio should invest in efforts such as expanding college assistance, affordable preschool options, public safety, and equitable and adequate funding for our public schools. 

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News: Ohio’s Doing Okay, but there is Room for Improvement, Columbus Dispatch
Notes: Advocates for income tax cuts continue to believe that these policies will grow jobs. Ohio’s economy paints a very different picture.  After 8 years of tax cuts, Ohio sits as the 3rd worst nation for job creation. While month-to-month numbers are not a telling picture of the overall economy, Ohio had the most job losses compared to all other states last month. Over the past 12 months, Ohio is 44th for job growth with a rate of. 4% compared to a national average of 1.7%. It is time for Ohio to set economic policy based on facts and not philosophies that tax cuts grow jobs. 

News: Supreme Court Expands Medicaid Expansion, Columbus Dispatch
Notes: If you have not heard, Medicaid Expansion comes to Ohio and will grant low-income individuals – up to 138% of the poverty level – with access to Medicaid. It is interesting to note that four justices believed the controlling board acted within its authority and 3 justices would have dismissed the challenge because it is a political question as to whether or not a legislative panel can exceed the scope of the legislature. In the end, this means that close to 300,000 additional Ohioans will have access to healthcare in 2014 than would have otherwise.

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News: Jobs Promises Unfulfilled by Many Companies Getting State Aide, Columbus Dispatch
Notes: Ohioans paid hundreds of millions of dollars to invest in private corporations. A recent audit of these expenses shows that only about 1/2 of the companies succeeded in accomplishing their goals. We need to invest resources into programs that we know improve our communities – like schools, public safety, and community parks. “[While] the percentage of companies that didn’t meet their benchmarks is disturbingly high…The larger question for taxpayers should be whether companies receiving aid would have created those jobs regardless of the incentives,” said Robert Greenbaum,  a faculty member at the John Glenn School of Public Affairs at Ohio State University who has studied the effects of government aid.

News: Ohio bill allows same-sex couples to file jointly, Akron Beacon Journal
Notes: If two people are legally married, they can file a joint federal tax return. Those numbers are then used to calculate the couples state tax return. Sounds simple enough. However, a same-sex couple who marries in a state like Iowa – that recognizes gay marriage – must complete a joint federal tax federal tax return and a separate federal tax return filing as individuals and these numbers are then imported onto the state income tax return. When we look at tax policy, we should apply the tax responsibility equally and efficiently when possible. 

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News: Governors Wants Voters to Keep Funding Public Works Projects, Toledo Blade
Notes: Ohio’s state parks have had a $500 million back log of maintenance projects, our sewers and water supplies need billions of dollars of investment, and we continue to have 5,700 county bridges that need updates. Governor Kasich recognizes the need to invest in these areas to create jobs and improve the quality of life for Ohioans who benefit from these public services.  As Ohioans prepare for the Ohio Capital Budget early next year, we will engage in a debate on how much do we need to invest to build and maintain a great infrastructure and how should we pay for those investments. We can pay for these investments by borrowing the money, by investing current tax revenues, or a combination of the two. 

News: House Republicans say the bill would provide tax relief for landowners and small producers, Youngstown Vindicator
Notes: HB 375 imposes a 1% tax on oil and natural gas profits. However, it also creates tax credits and distributes any new revenue into income tax cuts that will primarily benefit the wealthiest Ohioans. Ohio should follow the example of other states, including neighboring West Virginia and have a fair rate and invest the new revenue back into our local communities. 

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News: Ohio’s Frayed Safety Net, Toledo Blade
Notes: Ohio has much to do to strengthen the safety net for Ohioans who are struggling this holiday season. When 1.1 million children in Ohio are living in low-income situations, we have a moral imperative to act. Simple actions such as strengthening the Ohio Earned Income Tax Credit, increase access to affordable child care, and invest in education will strengthen the safety net, increase opportunities, and build a stronger community. It is time to prioritize people and invest in Ohio’s Future. 

News: Rich Prosper Among Large Income Gap, Columbus Dispatch
Notes: Americans are more productive and work longer hours, but are not seeing this pay off with increased salaries and more economic stability. The article correctly identifies that tax cuts will not be a solution to economic inequality. National tax increases in 1993 and in 2013 have been tiny compared to the tax cuts that were passed in the 1980s and early 2000s. We need to identify solutions such as a strong educational system, job training services and other long term solutions to income inequality. In Ohio and our nation, we cannot be afraid to invest in innovative ideas and new approaches to strengthen the middle class, assist those in poverty, and improve the quality of life for all. 

News: County looks at selling off its buildings, Cincinnati Enquirer
Notes: County government is important in developing infrastructure, regional collaboration and many other public services. The state of Ohio has cut over a billion from local governments overs past 3 years, and it is having an impact. Hamilton county has cut jobs, reduced services, and has struggled to maintain their facilities. As a result, the county is appears to accept the new status quo of reduced community services and may sell some of its space to new developers. 

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News: Ohio task force seek $189m to treat painkiller habit, Toledo Blade
Notes: Many of us know somebody who suffers from addiction and are desperate to find resources to help them get their lives back on track before it is too late. Addiction spans all parts of Ohio- rural, urban, poor and wealthy.  Bob Sprague (R- Findlay) said, “the savings from the Medicaid expansion would be better spent on the urgent need for community-based treatment than for more tax cuts.”  After the controlling board expanded Medicaid in Ohio, budget experts believe Ohio will have about $404million in additional revenue. The Senate legislation has a bill pending (SB210) to give this money away as another income tax rate cut – primarily benefiting the wealthiest Ohioans. 

News: GOP Bill sets low drilling rates in Ohio, Columbus Dispatch
Notes: The severance tax in Ohio is extremely low and does not reflect the current economic realities of oil and gas drilling in Ohio. Updating the severance tax to a reasonable level is the prudent decision, and the new resources should be utilized to serve the needs of all Ohioans and not just the wealthiest in another income tax rate cut. While a step in the right direction, HB 375 would undervalue the resources that are beneath our feet and allocate the additional resources improperly by funding income tax cuts. 

News: Ohio falls to 40th in health rankings, Columbus Dispatch
Notes: State rankings compile a lot of data and simplify it into a single number. These are very helpful starting points, but we need to remember to look behind the single number at the remaining data. While Ohio has made some progress – that should be applauded – in our state’s health and well being, Ohio still lags many other states on many other indicators. Likewise, when we look at tax rankings from the Tax Foundation or ALEC, we should look behind the single number and look at what is actually measured. Most importantly, does Ohio want to be remembered for low taxes or for having a strong and healthy community? 

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News:  A step forward on raising Ohio’s oil and gas severance taxes: editorial, Plain Dealer
News: Movement in the House, Akron Beacon Journal
Notes: When we go shopping this holiday season, we will go into a store, pick out something that has value to us, and pay the store for that item. The price we pay will likely be fair price based on the current economic market and demand for that item. If a store failed to update their prices after decades of economic changes, that store probably will not be in business very long. This is what has happened in Ohio with oil and gas drilling. Ohio needs to set a fair severance tax rate that reflects the value of these resources to Ohioans. As the newspapers point out, any revenue generated from a fair severance tax should not be used to offset Ohio’s income tax, but invested in our communities and restore funding for great public services that lead to stronger communities. 

News: Who Should Pay?, Columbus Dispatch
News: Ohio Association of Community Colleges want need based aid restored, Youngstown Vindicator
News: The Columbus Dispatch Editorial Board asks the wrong question, “Is the state’s primary obligation to help as many needy students as possible to afford tuition, or to also help some cover living expenses?” The Ohio Association of Community Colleges proposes that Ohio restores funding to pre-recession levels for Opportunity Grants. This proposal will not require cuts to existing students at four year colleges. Ohio policymakers should ask the right question – “Is the state’s primary obligation to help as many needy students as possible, or give tax cuts that primarily benefit the wealthy.” When we ask the right question, the answer is clear. 

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Nelson Mandela: 1918-2013
We join the world today in celebrating the life of Nelson Mandela. He showed the world the way of reconciliation and fostered a belief in working for the common good. After sitting in prison for over a quarter century, he forgave his captors, was elected president, and set an ambitious goal of expanding basic public services – such as clean water, roads, and electricity – to the entire country.  May your spirit of reconciliation and working for the common good live and grow throughout the world.

News: Huffman Plan would cut state income tax, Lima News
Notes: Corporations that extract our natural resources from beneath Ohioans feet should pay their fair share for those resources. A 1% tax will be one of the lowest rates in the nation and the corporations will continue to avoid paying their fair share. We need a severance tax that generates revenue to invest in our communities, and  HB 375 falls short by allocating the revenue generated for another marginal income tax rate cut that will primarily benefit the wealthiest Ohioans. 

News: New Ohio earned income tax credit called a good start, but built-in restrictions limit its benefits to the poor, Plain Dealer
Notes: The Earned Income Tax Credit (EITC) was included in the recent budget bill. It is a good first step, but it comes up short. The current credit is non-refundable, which makes it unusable by many working, low-income families. A refundable credit will put a few extra dollars in struggling families pockets to purchase new school supplies, medicine, and basic household necessities. The EITC is an effective tax credit that has raised millions out of poverty throughout the country.