I guess John Kasich didn’t get the memo from Tax Commissioner Levin about the drop in Ohio’s state tax burden. 33rd in the nation now. Way near the bottom. And way below Alaska (#1) and Wyoming (#2) – two states that have eliminated their personal income tax just like Kasich wants to do in Ohio.

So either John Kasich didn’t get this memo – or he is just flat out lying in his latest fundraising email, which starts like this:

April 15 — Tax Day — is just around the corner. In Ohio, our high tax burden has hurt our economy and been a barrier to job creation. That has to end and I am committed to doing everything I can to revive Ohio’s economy and create jobs.

And guess what follows that?

You guessed it: a plea for contributions to his campaign.

To make this happen, I need your continued support. This Tax Day, do something real to make your voice heard — and actually reduce your tax bill. Ohio law allows for a dollar-for-dollar tax credit of up to $50 for an individual and up to $100 for married couples filing jointly for making a contribution to a candidate for state office. You can make a contribution to my campaign for Governor this year and claim your tax credit on your 2010 Ohio tax form.

You can’t just make crap up, John, and then expect people to give you cash based on that lie.

Well you can, I guess.

But you’ll eventually end up looking like this guy.

 
  • Danngoingdown

    If you believe this is a false statement, when are you going to file the false statement claim with the Ohio Elections Commission? Here’s a link to their website, you can have ModernEsquire file it for you.

    http://elc.ohio.gov/

  • Levin's numbers are flawed. Ohio's tax burden is not lower, rather tax collections are down. Just because the State has collected less money in tax does not mean that taxes went down, it just means that the State has failed to collect as much as in the past. It is indicative of the poor health of Ohio's economy.
    Small businesses are fleeing the State due to the high tax rates. All of Ohio's neighbors have lower marginal rates, lower income tax rates and because of this all of Ohio's neighbors have collected more in tax.

  • modernesquire

    Couldn't not being more wrong if you tried.

    First, Ohio's personal income tax rates have been cut 17% during Strickland's term. That's the actual marginal tax rates.

    So, no, the tax burden in Ohio has not decreased solely because of less collections. Ohio is collecting less revenues because the tax burden has been decreased and the downturn in the economy. Regardless, your claim is rather silly because the (decrease in revenues from the economy) theory would apply equally to the other States as well. There's no evidence that it's hit Ohio's collections particularly harder than other States.

    Second, there is absolutely NO evidence that small businesses have fled the State, let alone due to high tax rates. There's not a single study that supports that myth.

    There's no evidence that Ohio's neighbors have collected more in revenue. Also, even the conservative anti-tax organization the Tax Foundation has found that Ohio's are below the median of the other States in the Midwest. Again, you are not dealing with any facts.

  • @Squire, you mention that there is no evidence multiple times, yet you do not identify where you are looking to determine this.

    Let's look at Ohio's current income tax. Ohio residents fall into one of Nine tax brackets, with a top rate of nearly 6 percent (after the 2009 Strickland tax increase). By contrast, its neighbors impose lower, flatter taxes on income. Pennsylvania has a flat income tax at 3.07 percent. Indiana levies a flat 3.4 percent income tax. Even Michigan beats Ohio by this metric, with its flat 4.35 percent income tax.

    Now on to Sales Tax
    Michigan, Kentucky, West Virginia, and Pennsylvania all have a lower sales tax than Ohio. Ohio's high tax rates are literally chasing job-seekers out of the state. According to the Ohio Bureau of Employment, between 1999 and 2008 over 354,000 workers have left the state to seek out jobs elsewhere. As a result of this, every border state with a lower tax burden than Ohio actually collects more tax dollars according to the FTA study.

    NCR left Dayton, according to their CEO, due to unfavorable business conditions (including tax), 900 jobs lost to Ohio, 900 jobs gained for Georgia.

    While it may be simple to ply partisan rhetoric and dance giddily when a report shows lower tax collections for a state, as an economist it is more important to me to identify the reasons why Ohio can't fund its activities rather than observe (wrongly so) that Ohio is now a hotbed for businesses wanting to pay less tax.

  • modernesquire

    Now your changing your argument. Your first point was that Ohio has not lowered its tax burden. It has by some 17% under Governor Strickland (you are paying less in State taxes than you were before Governor Strickland was in office.)

    You initially claimed that wasn't true, that only collections went down.

    With the exception of Michigan, all surrounding States have had lower unemployment than Ohio. Unemployed people have looked at those States because of THAT fact, not taxes.

    NCR did not leave because of taxes. It left because its new CEO, from NYC, was interested in moving the company out of Dayton because he believed he couldn't get qualified employees willing to live there as opposed to Atlanta. Quality of life issues had more to do with that decision, so says the CEO, than taxes.

    This report doesn't show lower tax collections, it's about rates.

  • Could you help me with how you ascertained that the report doesn't show lower tax collections? I have reviewed it and that is what it states.

    I do applaud the Strickland administration for not fidgeting with the tax reductions that were enacted during the Taft administration. The fears of small business owners when Strickland took office was that he was going to stop the tax reductions and begin to slowly hike them. To his credit, his team identified the disparity that Ohio has with regards to tax rates and allowed the existing reductions to stay in effect.
    Without being a small business owner, it can be difficult to understand the oppressive taxation currently in play. For instance, when I mention the Ohio CAT tax to folks, rarely will anyone know what I am talking about. The CAT tax is an annual tax imposed on the privilege of doing business in Ohio, measured by gross receipts from business activities. The more money you earn in Ohio, the more CAT tax you pay. This tax stands in addition to any property, income, capital, interest or interstate commerce tax the Ohio business may be asked to pay.
    While I would wholeheartedly like to think that the business climate in Ohio has improved by more than 100% since 2008 as the report intimates, (as Ohio used to top charts in gross tax receipts) I doubt that these numbers really demonstrate progress.

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