Modern has been hitting Kasich pretty hard recently on his plan to eliminate Ohio’s income tax, which Johnny claims will improve Ohio’s currently-crappy economic conditions. The example Kasich gives as “proof” for his no-income-tax=better-economy has continued to be Florida despite the fact that Florida’s economy has been tanking worse than Ohio’s the past few quarters.
The truth is: Florida is not the model we want to follow. Florida had a good run – mainly because it is warm and has beaches. People from places like Ohio obviously find that appealing. But Florida is like any other place. It has local and state governments that need to provide services to its citizens. And government needs money to operate. If it doesn’t get it from an income tax – which, compared to some other types of taxes, is relatively fair – it’s going to get it some other way.
Despite Kasich’s mythical belief that Florida is some anti-tax paradise, it turns out that Florida’s taxes can actually be worse than Ohio. The money Floridians pay in property taxes and hurricane-insurance premiums “can still exceed what folks in many other states pay for state income tax, local property tax and homeowner’s insurance combined.”
In addition to the potentially higher taxes, Florida loses to Ohio on another major front: Jobs. Actual proof of this came today in the form of an announcement that Florida’s unemployment rate jumped to a 34 year high of 11.8 percent last month – ten points higher than Ohio’s unemployment rate.
It’s starting to look more and more like Kasich’s “eliminate the income tax” proposal is going to become another Blackwell-like, “sell the turnpike” campaign failure.
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