John Kasich used to be a banker. Now, Ohio's Republican governor is studying a possible tax cut for the state's financial institutions.
Banks, savings and loans and most other Ohio financial institutions still pay a corporate franchise tax, a 13-mill tax based on net worth. Kasich, a former executive at Lehman Brothers, suggested yesterday that altering the tax could reduce costs for banks and generate more loans.
"I mean, taxing people on the basis of net worth instead of net income is something that's not all that appealing to me," Kasich told about 300 bank executives at the Ohio Bankers' Day Conference at the Crowne Plaza Columbus North.....
Isn't this exactly what Ohioans don't want to see-------helping out bankers? Kasich's mindset is one that obviously favors bankers over average people. His support for SB 5 demonstrates that he continues to side with businesses over the rights of firefighters, police officers, teachers, nurses, and public employees. Kasich and the Republicans even want to defund the office of Ohio Consumers' Council, which protects citizens from unscrupulous businesses and the unfair utility rate hikes. Even though the Republicans cut tax rates under former Gov. Bob Taft for corporations, we've seen no actual improvement in job creation since the Taft tax cuts. When corporations and CEO's get tax cuts, we've seen them reward themselves with bonuses instead of investing in adding jobs.
In 2005, PolicyMatters warned Taft that tax breaks were not the way to proceed:
...It creates new fiscal problems instead of solving them. The income-tax cut will
reduce state revenues by nearly $1 billion during the FY 2006-2007 biennium, and by $2
billion a year when it is fully implemented in 2010. This makes it difficult to pay for crucial services and investments, and increases the chances of another state budget shortfall in the future. It also is likely to lead to higher local taxes, as local governments attempt to
make up for lesser state support.
It takes revenue out of the state. One-seventh of the tax cut will leave Ohio, lost to
federal taxes because taxpayers who itemize will have lower state income tax to write off
on their U.S. returns. This amounts to $280 million a year when the cuts are fully
implemented. This will hurt Ohio s economy.....
....It favors the wealthy. According to a study conducted by the Institute on Taxation and
Economic Policy (ITEP), if you make more than $274,000, then you are part of that 1% of
Ohioans who on average will get more than $8,000 apiece from it. This small group will
receive almost a quarter of the benefit from the income-tax rate cut. On the other hand,
the 60% who make less than $43,000 a year will get just 14% of the total income tax
break. Ohioans who make less than $16,000 a year a fifth of all taxpayers on average
will see a reduction of just $19 a year.....
Taft did not do anything to grow jobs in Ohio and it looks like Kasich is following in his footsteps. Taft's tax policy helped create the mess we are experiencing today. Kasich just wants to make the hole deeper.
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* Looks like the Republican weasels that supported SB 5 are dropping out as fast as they can. Apparently, they cannot handle the payback they are receiving from Ohio's hardworking men and women who oppose SB 5: Karen Gillmor (see Facebook) and Jimmy Stewart (see Garfield Reporter). Which Republican weasel will be next? Opponents of
SB 5 need to keep up the pressure on those Republicans who oppose workers' rights.
<------- Ohio Republican weasel