Posted on 02/08/2005 10:19:18 AM PST by KarlInOhio
Taft wants consumers to dig deep - again
Businesses, wealthy would get tax breaks
Tuesday, February 08, 2005
Julie Carr Smyth and Sandy Theis
Plain Dealer Bureau
Columbus - Gov. Bob Taft is poised to unveil a tax reform package in today's State of the State address that asks consumers to bear a larger burden for getting Ohio's economy back on its feet.
The Republican governor's plan calls for easing some of the state's most unpopular business taxes, while spreading the impact of others to out-of-state firms that sell their wares inside state lines.
Taft also will propose 21 percent across-the-board cuts in personal income tax rates, a move aimed largely at helping wealthy investors and small-business owners in the top bracket do better. His plan would exempt 600,000 Ohioans making under $10,000 a year from all income taxes.
Tax revenue lost through business and individual tax relief would be recouped in Taft's plan through new charges for a stable of everyday items: cigarettes, alcohol, electricity, homes and purchases at the mall.
The administration also will propose an "environmental protection fee" of $2.75 per ton of garbage disposed of in Ohio to cover cuts in the budgets of the Ohio Environmental Protection Agency and Ohio Department of Natural Resources. That would raise total taxes per ton to $4.75.
The proposal is among several initiatives that Taft will address in his speech.
For higher education, the governor wants to cap tuition increases at public colleges to 6 percent each year and provide college scholarships to more low-income Ohioans.
John Corlett, senior policy analyst for the Cleveland-based Center for Community Solutions, said Taft's tax changes offer the least for low-income Ohioans.
"It seems to be giving the largest share of this tax break to Ohioans making $643,000 a year on average," Corlett said. "Increases on beer, wine, cigarettes and sales will wipe out whatever tax cut that lower income families get. They could see a tax increase overall."
Policy Matters Ohio, a Cleveland-based think tank, calculated that Taft's income tax proposal would return about $8,400 a year to the wealthiest taxpayers and just $12 a year to the poorest.
The backbone of Taft's plan came from the Ohio Business Roundtable, a coalition of corporate executives that enlisted Ernst & Young and Taft's former tax commissioner, Tom Zaino, to author a blueprint for reform.
The premise was that Ohio's tax code is unfriendly to business. A letter circulated recently by Roundtable Chairman John Barrett noted that Ohio has "the worst of both worlds - high [business tax] rates and low collections."
Taft worked with Republican legislative leaders to best tailor the plan to his own agenda: economic growth and job creation. His proposals scale back many of the Roundtable's business tax breaks and consumer tax hikes, and reject proposed caps on the new business tax of $1 million per entity and $10 million per corporation.
It also phases out both the corporate franchise tax and the tax on tangible personal property, such as machinery or inventory, in favor of a broad-based tax on business sales, known as gross receipts. The goal of the so-called "business activity tax" is to more accurately capture sales activity in Ohio by both in- and out-of-state firms. Businesses making less than $1 million a year would be exempt from the tax.
The Taft plan also would raise cigarette taxes to 90 cents a pack from 45 cents; double beer, wine and alcohol taxes; and hike electricity taxes by a third.
One of its more controversial pieces is a statewide sales-tax rate of 5.5 percent. That is half a cent less than the current rate, but half a cent more than what the rate was supposed to fall to when the temporary penny increase expires later this year.
Senate President Bill Harris said state lawmakers would not support retaining the full 1-percent hike, an increase they pledged would not last.
"We're not retaining that penny to balance the budget," Harris said. "If we see a proposal for a portion of that penny, in the context of meaningful tax reform, our caucus could be supportive."
Bad: only reduce temporary sales tax by 1/2 percent instead of the promised full percent, trash tax, alcohol tax, cigarette tax, business activity tax.
Note the whining about the "income tax proposal would return about $8,400 a year to the wealthiest taxpayers and just $12 a year to the poorest". So if you only pay $12 of income tax and are kicked off the tax rolls altogether, you're being cheated because that's only $12.
taxes on the poor,
taxes on mail order purchases
this whore needs to go
"double beer, wine and alcohol taxes; and hike electricity taxes by a third."
He can go to hell.
The 3 states with the most spending: California, New York & Ohio. Taft has been a disaster for Ohio's taxpayers. Because of him and some of the GOP, I'm no longer voting the party line in state elections.
Yep, I'll vote for Blackwell and, thanks, I'll check out the Constitutionalists.
"double beer, wine and alcohol taxes; and hike electricity taxes by a third."
He can go to hell.
Ditto
The only Ohio Republican I'll vote for is Ken Blackwell. Other than him, the Pubbie party here is a bunch of RINO eunuchs.
I'm with you.
The State gop needs a wake-up call.
Are you running as a Constitutionist?
i'm so glad i don't live in ohio anymore. taft is a rino.
his ancestors the prez and the senator are spinning in their graves.
With Repubs like this, who needs Democrats? It once again proves my assertion that we don't have two political parties in this country. We have one statist superparty.
Well, I'm sorry, but I have several problems with this headline. The former president has been dead now for many decades, so I don't think too many people will listen to what he has to say. Plus, he was very fiscally conservative, especially compared to the politicians of today. Billions for tsunami relief? Not in the Constitution. Hundreds of thousands to study the sex habits of a Left-Handed Yellow-Bellied Slug? Not in the Constitution. Welfare and free education for illegals? Not in the Constitution.
If the man weren't dead I would vote for him!
Taft wants consumers to dig deep - again
I suspect that you may have misinterpreted the headline, although not having read the article either, I have no way of knowing for certain. I have a more grisly take on this, that the former president, whom I believe was buried in a Piano case, remains undigested by worms. It seems clear to me that he's speaking through this reporter asking for worms, bacteria and fungus to reach deep into the soil and consume him.
Owl_Eagle
”Guns Before Butter.”
Blackwell's a good man.
Unfortunately for the Ohio GOP, Bob Shaft has ruined their reputation. You're right in that most Pubbies in Ohio are RINO's. Actually, some of the local Republican mayors and councilmen in Summit County are good. So is Rep. Chabot in Congress.
Placing the 'Rats in charge in this state effectively gives state power to the unions. That's great. We're already not very competitive economically thanks to earlier 'Rat administrations and Ohio Supreme Court Judges (Celebreeze) -- another more Years of the 'Rats will finish this state off for good.
Please visit www.bobtaftsucks.com and post your comments - they are right on target!
Please visit http://www.bobtaftsucks.com Yes bob Taft is suffering with the RINO Virus go Blackwell!
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