John Kasich has a new Jindal-Lite plan to raise taxes on Ohioans, and the legislature has 1 week to mull it over.

The conference committee for the Ohio budget has reported out a plan with completely different tax provisions than either chamber. It dramatically raises sales taxes and property taxes to finance a tax cut for business investors and an income tax cut for the rich, with a number of other brand new changes.

Whose taxes are going up?

Pays sales tax Doesn’t pay sales tax
Ohioans who buy things Non-Ohioans
People with no investments Venture capitalists
Pays property tax Doesn’t pay property tax
Ohioans Non-Ohioans

Whose taxes are going down?

Pays little income tax Pays income tax
Low income persons High income persons
Retirees Venture capitalists
Doesn’t pay PTE tax Pays PTE tax
Workers Venture capitalists

Which all adds up to:

Hurt by Kasich plan Benefits from Kasich plan
Ohioans who buy things Non-Ohioans
Retirees Venture capitalists
Low income persons High income persons

This plan is bad for Ohio’s economy. Raising property taxes will dissuade home buyers, and raising sales taxes will dissuade consumer spending. Home prices and consumer spending are the backbone of our recovery.

The income tax cut is miniscule. For the median Ohio household, it’s a cut of 0.32%. Nobody thinks the business-investor tax cut will benefit the economy in any way.

Here are the rate cuts:

Income Rate cut
$0 – $5K 0.059%
$5K – $10K 0.117%
$10K – $15K 0.235%
$15K – $20K 0.294%
$20K – $40K 0.352%
$40K – $81K 0.411%
$81K – $102K 0.47%
$102K – $204K 0.545%
$204K + 0.592%

This is also an example of the jaw-dropping bias Ohio’s papers give to Governor Kasich. The sales tax increase is given as a percent of sales, but the income tax increase is given as a percent of tax rate.

If they reported them the same way, they would call it “a 5% sales tax increase and a 10% income tax cut” or “a 0.25% sales tax increase and a 0.32% income tax cut”.

But they don’t, because this plan is just that bad. It’s a tax increase on most Ohioans, including every retired Ohioan. When the GOP calls it a tax cut, the media just gets confused and runs the language from the GOP press release.

Let me be blunt.

John Kasich wants to raise taxes on people who live in Ohio to finance a tax cut for his campaign donors who don’t live in Ohio.

Even Jindal didn’t have the chutzpah to pull this off.

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  • dmoore2222

    Ohio got what lazy, apathetic democratic party voters asked for by not voting in the 2012 gubenatorial election. The consequences of that are a continuous stream of bad ideas that we’ll live with for a long time.

  • pb_dirtgirl

    When the original Kasich tax plan was introduced, his Tax Commissioner gave extensive testimony claiming that the plan made Ohio’s tax code MORE progressive by lowering the sales tax and how this was a GOOD THING. (It was all B.S., but set that aside for a minute). Now they are coming out and arguing the exact opposite thing, just 3 months later, claiming that consumption taxes are the way to go and we need to make the tax code more regressive.

    Why should we listen to them now? They come up with the justifications well after they decide on the policies.

    And remember how they were going to raise taxes on oil companies to pay for the tax cut? Not anymore. Obviously the poor need better lobbyists.

  • carrieee4

    If my property taxes rise any more I will have to sell my house. I already pay over 3,000 a year. When I first bought the house the property tax was not bad but over the ten years we have lived here it has done nothing but go up and up and up. I even voted down a school tax for a new school something I would have never done in the past however I cannot afford one more raise on property taxes. As for consumer taxes. Do you not understand that the more you tax the things we buy the less we buy? Take that surplus 300+ million dollars we the taxpayers have shelled out begrudgingly and give it the PUBLIC SCHOOLS> It will benefit more people in the long run and increase sales taxes (more poeple making more buy more in the lower income brackets) Which causes more production…more job…more with higher incomes…spend more money… ) and then we would have a good cycle going again but really It makes tooooo much sense doesn’t it?

  • carrieee4

    But you see this is their plan it confuses the general public and they end up believing what they want to believe even when it is not the truth and then they get tired of hearing us say they are always lying so they again believe what they want to be the truth.

  • Think.

    Too bad the poor and the elderly aren’t represented by corporate lobbyists like the wealthy are.

  • Retrofuturistic

    And now we have the Christian Tea Party gerrymandering that will make it much harder to get rid of them. Add that to hackable voting machines and optical scanners and we could be screwed….

  • Linda Myers

    Exactly. Right now Kasich is trying to position himself as a bit more moderate, but if he gets another term and has a GOP controlled legislature……Katie bar the door.

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