Thursday, June 16, 2011

Tax Breaks?

OMG!  Kasich wants more tax breaks????  Tax breaks are useless in creating jobs.

Dispatch:

....it's unclear whether low state taxes lead to economic prosperity. Connecticut, Illinois, Massachusetts, New York and New Jersey are among the states with both higher tax burdens than Florida and lower unemployment rates.....

....There seems to be no clear link between low state taxes and a thriving state economy. Although Florida has the fifth-best tax climate in the latest Tax Foundation survey, its 10.8 percent unemployment rate is well above the national average.

New York has the nation's most-burdensome tax climate, according to the Tax Foundation, yet its 7.9percent unemployment rate is below the national average....

Of course, Ohio's Gov. John Kasich, a disciple of totally flawed Reaganomics and "trickle down economics" philosophy, doesn't seem to get it that Ohioans are not in the mood for more tax breaks for Kasich's corporate cronies and his rich pals.

Dispatch:

Gov. John Kasich has proposed an income tax break for anyone who invests in Ohio companies that could become law July 1....

....At a Statehouse press conference called by the Ohio Civil Service Employees Association, state Sen. Michael Skindell, D-Lakewood, called the lottery privatization plan "another example of putting special corporate interests in front of what is right for the citizens of the state of Ohio."
Skindell also said privatization could be unconstitutional since the Ohio Constitution calls for the lottery to be run by "an agency of the state."

Do you think Kasich was aware of that stipulation about the Ohio Lottery in the Ohio Constitution?

There is even more controversy about the recent "deal" that Kasich got with some casino owners.  Dale Butland of Innovation Ohio told the Examiner that Ohio lost some tax money in the Kasich "deal."

The Examiner:


....Butland called specific attention to an often repeated statement by Kasich that the 33 percent tax rate on casino revenue passed by voters in 2009 was a 'bad deal' for Ohio. "Why did he extend the same 'bad deal' to VLT operators? Why is a 33 percent tax rate on profits from slot machines located in casinos a 'bad deal,' but a 33 percent tax rate on profits from slot machines located at race tracks an acceptable deal?" Butland opined.

IO said it appears that in return for the $110 million in voluntary casino fees Ohio will receive over the next 10 years, Gov. Kasich has given up significantly more than that in casino and VLT tax revenue and upfront fees. "Specifically, over $1 billion in annual VLT revenue was originally to be taxed at a 50 percent rate, with each track paying $65 million in upfront licensing fees," Butland bemused, adding that Kasich's deal reduced the tax rate to 33.5 percent and the licensing fees to $50 million, sums in addition to lost revenue from the Commercial Activities Tax. "Can he explain how his 'deal' isn't a net loss for Ohio?" Butland asked.

Furthermore, IO's curiosity was peeked by the topic of the consultancy firm Gov. Kasich hired -Moelis & Co.-  and whether it will receive a percentage of whatever additional revenue it can get casinos to pay. "How much will Moelis receive from the deal struck with ROC? How much additional money will they receive if the same or a substantially similar deal is struck with Penn National?" Butland added.

Kasich certainly does not  have the golden touch.  It seems that everything that Kasich touches or tries to "reform," hurts regular, average, working Ohioans, the poor, the elderly, and public school children.  
 
Do you need some examples???? Here are just a few:
 
  • Kasich's school "reform" to add more charter schools has resulted in drastic cuts in state money for public schools, colleges, and universities.  However, Kasich's "reforms" will help big time Republican contributor, David Brennan, get richer.
  • Kasich's plan to "reform" the state Department of Development has resulted in a privately administered "JobsOhio" program with bonuses for some, will slash job training programs and centers to help the unemployed.
  • Kasich and the Republicans hatched the SB 5 legislation to "reform" collective bargaining, but it will take away job protections and workers' rights. 
  • Kasich's plan to "reform" Medicaid and cut programs for the sick and elderly will reduce services for those in nursing homes and force others to live in their children's basements/spare rooms/on the streets.
  • The Kasich "reform" plan to privatize various parts of the Ohio government (like snow removal, etc.) will help generate business for his cronies and eliminate thousands of jobs in the state.
  • The Kasich "reform" plan to privatize prisons and the turnpike could endanger the lives of our citizens. 
  • The "reform" plan created by Kasich for the Ohio Department of Education has placed pro-charter school supporters in control of the curriculum, testing, teacher certification, and other aspects of education.  Does he want our public school children to perform just as poorly as those at charter schools?

Be careful and worry about the next time Kasich opens his mouth and mentions the word "reform."