News & Notes June 23, 2014

June 23, 2014 by

Share This!

Screen Shot 2013-07-23 at 9.22.50 AMNews: As Ohio Expands Tax Cuts, the Poor get Poorer, Cleveland Plain Dealer
Notes: “So, today’s Statehouse irony: The tax cuts that give General Assembly Republicans a platform leave middle-class Ohioans treading water – and unfilled potholes in front of country clubs.” READ MORE

News: Tilt of the Governor, Akron Beacon Journal 
Notes: The Governor signed another tax cut last week costing the state over $400 million. 50% of the cut will go to the wealthiest 5% of Ohioans. 

News: Ohio’s Economic Recovery, Not a Simple Tale, Columbus Dispatch
Notes: The national recession and recovery have more to do with Ohio’s economy than state level decisions. Tax cuts simply have not worked in improving Ohio’s economy. In fact, Ohio is lagging much of the nation. The simple reality is that governor’s have the most impact in creating great public services that will be the foundation of a strong economy into the future. Investments into reliable infrastructure, schools, and public safety are prudent ways to grow an economy over the long term. 

News: Wages flat in Ohio, decline locally, state job growth below national average, Cleveland Plain Dealer
Notes: The unemployment rate does not reflect Ohio’s unemployment picture for Ohioans. Ohio’s unemployment rate is dropping because too many people have been unemployed for so long that we stop counting them. Job growth is slow and far too many new jobs are part-time and low wage. This will continue to drag the rest of Ohio’s economy downward. 

Filed Under: One Ohio Now Tagged With:

Governor Signs Budget Bill: 50% for the 5%

June 17, 2014 by

Share This!

Ohio Continues a trend – Cut taxes for the wealthy and not investing enough in our communities. 

 

hb483
On Monday June 16th, Governor Kasich signed HB 483 also known as the Mid-Biennium Review (MBR). This legislation continues a decade long trend that prioritizes tax cuts for the wealthiest Ohioans. The bill cuts taxes in by about $400 million over the next 12 months (July 2015 – June 2016). Over $200 million of this cut (50%)  will go to the wealthiest 5% of Ohioans.  The poorest Ohioans will probably not receive any of this.

 

 

Tax cuts just don’t work. 

The tax changes include an increase to a tax credit for some business owners – that has no evidence showing it is effective at creating jobs. We need to review tax breaks and loopholes and keep the ones that work, and get rid of the ones that don’t.

Tax cuts continue to benefit the wealthy the most.

The bill cuts Ohio’s income tax by 1% (reducing the top marginal tax bracket 5.39% down to 5.33% in 2014 instead of 2015). The top 1% will pay an average of $400 less in income taxes – while those in the middle will only save $8 a year. We need the wealthiest Ohioans to pay their fair share – the more we cut the income tax, the father we get from that goal.

Some Good? Maybe. – put it’s really small.  

The bill does provide a larger tax credit for those who make less than $80,000 a year and an expanded Earned Income Tax Credit (EITC). However, the EITC remains non-refundable – excluding those Ohioans most in need. These two changes will put about $2 a month into middle income Ohioans pockets. While signs of a positive step, these changes fall short of helping many Ohioans.

Most importantly – we are not investing in our communities! 

$400 million is a substantial amount of revenue that could be invested into affordable housing, social services, K-12 education, reducing college tuition, or building alternative transportation options. While the bill did invest $36 million into expanding some social service programs – close to $500 million was requested by multiple advocacy organizations asking for resources to meet the current need.

 

Filed Under: One Ohio Now

Last Minute Tax Cuts Pass

June 5, 2014 by

Share This!

time to investThe Ohio legislature passed HB483 on Wednesday, June 4th, approving $400 million in tax cuts.  The tax cuts  benefit the wealthiest Ohioans the most and drain funds needed to invest in the great public services that strengthen our communities. Dozens of individuals testified throughout the Mid-Biennium Review process on where Ohio needs to invest – adult protective services, addiction treatment, housing, children services, local governments, infrastructure, food security, education, prison security and much more.

A QUICK SUMMARY OF THE TAX CUTS: 

Pass Through Entity Tax Cut: Ohio has no corporate income tax, but some business owners – such as lawyers and accountants in private practice – claim their business income on their personal income tax returns. These individuals are exempt from paying tax on their first 75% of income (up from 50% in HB59).
The Problem: This tax cut is intended to spur job creation – but businesses expand business based on consumer demand, not tax cuts. This will re-direct $290 million into the pockets of mostly wealthy individuals who have no intent to hire new people. 

Income Tax Cut: HB59 (June 2013) included a 10% income tax cut phased in over 3 years – with the final phase in coming in 2015. HB 483 speeds up the tax cut to all go into effect in 2014.
The Problem: The original tax cut was based on a theory that tax cuts lead to jobs – despite research and evidence to the contrary. This will provide nearly $100 million primarily for the wealthiest Ohioans. 

EITC: The bill expands Ohio’s Earned Income Tax Credit from 5% of the federal level to 10% of the federal – a step in the right direction.
The Problem: While this is a step in the right direction, an EITC is most effective when it is refundable. Without refundability of the credit, many will not benefit from this policy. This will provide only $17 million for low and middle income Ohioans. 

Personal Exemption: The personal exemption amounts will be increased for individuals making less than $80,000 a year. This policy will reduce the tax load for middle income Ohioans by about $73 million a year.
The Problem: It is important to make Ohio’s tax system less regressive and credits and exemptions for low and middle income Ohioans is an important step. However, this overall plan will only provide about $36 or $3 a month to middle class families.

Tax cuts just haven’t worked in Ohio – we need to invest in the foundation of a strong economy – great schools, reliable roads and infrastructure, and safe communities.
Filed Under: One Ohio Now Tagged With:

News & Notes June 2, 2014

June 1, 2014 by

Share This!

Screen Shot 2013-07-22 at 9.20.51 AMNews: Bad Budget Business, Toledo Blade
Notes: The typical middle class household will pay $24 less next year in taxes  as a result of an 11th hour budget deal. For this $2 a month, we will not invest over $400 million into our schools, public safety, or our community parks. A few more teachers in classrooms, or an extra police officer on our street are just some of the sacrifices we make to finance a tax cut for the wealthiest 1% of Ohioans who will receive over $1,800 a year. 

News: More Millions, Akron Beacon Journal
Notes: A summary of continuing a failed tax cut strategy. Simply put, tax cuts just haven’t worked in Ohio.  Government investments are investments in our priorities as the people of the state. 

News: To Help Poor Neighbors, Ohio needs to rebuild the Safety Net, Toledo Blade
Notes: The federal government cuts programs, the state cuts programs. Fiscal responsibility does not mean forcing the ones with the fewest resources to suffer in difficult times. Fiscal responsibility means that Ohio policymakers identify ways to meet the needs of the community in a responsible manner, and not forcing the poorest Ohioans to bear the brunt of a bad economy. Asking the wealthiest Ohioans to pay their fair share to support our community is a good first step toward fiscal responsibility. 

 

Filed Under: One Ohio Now Tagged With: