According the the Cleveland Plain Dealer, only 83,000 private-sector jobs were created in the nation in June. Of those, nearly 11% were created in Ohio alone as Ohio created8,900 new private-sector jobs last month (for the reading impaired, that’s non-seasonal/non-census jobs).
Once you factor out census workers, Ohio saw its private sector job creation increase by a factor of thirty from May after a sharp drop after April’s national leading private-sector job growth. Ohio was one of only twenty states that saw statistically significant changes in their unemployment rate.
According to this tweet from the conservative Buckeye Institute’s Matt Mayer, Ohio has only created some 127,300 private sector jobs since January 1990. That means one-third of all private sector jobs created since January 1990 in Ohio were created since February 2010. How does that suggest we haven’t been put on a path to recovery in this State?
A week ago, Keeling made a big to-do about CNBC’s ranking of the States for Businesses. Ordinarily, I don’t deal with such meaningless rankings, but a quick review of it proves a point as to why Kasich’s tax plan is a “solution” to a non-existent problem and will likely make things in Ohio worse.
Kasich’s entire selling point is that by repealing our income taxes and estate taxes, we can lower the cost of doing business and attract large-scale employers from out-of-state. The CNBC survey gives the most weight to the costs of doing business category, which it defines as taxes, and other government imposed costs. Ohio outranks no-income tax States like Texas, Florida, Alaska, Nevada and Washington. In fact, these States that form a majority of the eight States without a State personal income tax all ranked below the national median. In other words, the CNBC study shows that 1) the cost of doing business in Ohio is cheaper than in most States without an income tax, and 2) if anything, repealing a personal income tax seems to lead to higher, not lower, costs of doing business as the tax burden is concentrated onto non-wage income, business activities, and property taxes.
Incidentally, John Kasich’s favorite “pro-growth/no income tax” State of Nevada still leads the nation… in unemployment. In fact, Nevada set a U.S. Department of Labor Bureau of Labor Statistics record! No State has reported a higher unemployment rate than Nevada has since the Bureau began complying the numbers in 1976! Viva Las Vegas, Kasich!
We’re well on our way on an economic recovery in Ohio, thanks to Governor Strickland’s emphasis on increasing manufacturing in Ohio (which is leading the way for Ohio’s recovery) and increasing imports (to finally get Kasich and Portman’s flawed trade deals to work for Ohioans, instead of costing it jobs).
We don’t need to gamble our State’s fiscal stability on a risky tax plan that will only enrich Wall Street millionaires like John Kasich and makes things economically worse for Ohio.