How to Fix Ohio's Budget Mess

[Rick Rowlands]

So you want to raise revenue.  You will do this by:

1) raising tax rates on wealthy people. 
2) raise the income threshold for paying income tax
3) implement an earned income tax credit.
4) raise the commercial activity tax
5) raise corporate franchise taxes

If the economy were static and businesses were not allowed to close, contract or move, I would say that your plan would raise the revenues you seek.  But since business, like electricity, flows along the path of least resistance, I would surmise that these obstructionist taxes would cause business to flow to low tax states.

I am perplexed why you would include items 2 and 3 in a post about raising revenues.  Those are a net drain on the state budget, not income sources. 

[irishbobcat]

How to Fix Ohio's Budget Mess
There's only one fair way to fix Ohio's budget mess, although Ted Strickland and John Kasich are both not man enough to do or say it: Raise Revenues.

I would restructure the 2005 tax changes that lowered income taxes for wealthy taxpayers. The Office of Budget and Management says reversing just one year of the income tax cuts would bring in $422 million dollars. To help low-income households, raise the amount households can make before owing an income tax. Implement an Ohio Earned Income Tax Credit system like the Federal EITC. Currently, 24 states and the District of Columbia have this credit in place, which would bring low-income families out of poverty.
Raise the Commercial Activity Tax: revenues would allow for paying schedule reimbursements as well as add money to the General Revenue Fund. This could raise at least $50 million for the state.
Retain some of the income tax portion of the corporate franchise tax. Retaining at least 1/5 of it's former rate would give the state at least $200 million per year.


Dennis Spisak-Green Party Candidtae for Ohio Governor



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