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As Texas Goes, So Too Ohio?

By The Reverend Published: January 4, 2011

The Lehman Brothers Governor of Ohio, John Kasich, has promised to make Ohio a more appealing state for new business while simultaneously handling the state's $8 billion budgetary shortfall.

That promise, at least to me, means reducing taxes for the wealthier and for businesses, most likely ending Ohio's income tax altogether....while state and local sales taxes, property taxes and state related fees will have to be increased to make up for the losses. State educational and health related services, meanwhile, will have to be slashed. Union workers, Kasich has already explained, are going to get kicked in the teeth.

Ohioans probably didn't vote for regressive taxes and state fees when many had finished their Tea and went to the polls checking the box next to John Kasich's name.....but that's what they're going to get.

Have you noticed that states like California, New York and Illinois have been getting a lot of media coverage for their big budget shortfalls? The reason those states have been hand selected for criticism by media scoundrels is because those states normally vote Democratic. Scoff if you must....but that is the reason.

The state of Texas is not to be confused with a liberal state. I think everyone can agree on that. How is Texas doing during the national recession?

This month the state's part-time legislature goes back into session, and the state is starting at potentially a $25 billion deficit on a two-year budget of around $95 billion.

Mathematically speaking, Texas is worse off than California. But main corporate media, wired conservative as they are, have not bothered to inform Americans about the Lone Star State's severe budgetary problems, instead, it's that liberal-commie California which we've heard so much about.

So why haven't we heard more about Texas, one of the most important economy's in America? Well, it's because it doesn't fit the script. It's a pro-business, lean-spending, no-union state. You can't fit it into a nice storyline, so it's ignored.

In other words, Texas is what Governor John Kasich wants Ohio to emulate. "Pro-business, lean-spending, no-union." Voodoo economic believers insist that if all benefits are given to the wealthy and to businesses while making the non-rich pay more for what little the state government offers in services, then all will be well in the kingdom.

How's that working out down in Texas? Let's look at those numbers again....

This month the state's part-time legislature goes back into session, and the state is starting at potentially a $25 billion deficit on a two-year budget of around $95 billion. That's enormous. And there's not much fat to cut. The whole budget is basically education and healthcare spending. Cutting everything else wouldn't do the trick. And though raising this kind of money would be easy on an economy of $1.2 trillion, the new GOP mega-majority in Congress is firmly against raising any revenue.

Texas Governor, Rick Perry wants to handle the budgetary crisis like he did in 2003.....

Perry...Plays down talk of a state budget shortfall projected to reach as much as $25 billion. Has ruled out tax increases. Generally says the Legislature should balance the budget the way it did in 2003 – with cuts, not tax increases. Those actions included dropping 180,000 youngsters from the Children's Health Insurance Program, reducing teacher insurance benefits, raising fees and delaying payments to schools and Medicaid reimbursements to doctors.

My reason for bringing up Texas is because Texas is often lifted up as an example of how it should be done. No state income tax and a refusal to ever raise taxes again....bashing and marginalizing of unions....and the thinnest state services in the Union. In other words, the model for Teabaggers everywhere. The model Mr. John Kasich is bringing to Ohio with gusto.

The only thing is......that model has proven, like all versions of "help out the richest and they'll help all of us", to be ineffective in dealing with a severe downturn. That model, as we see in Texas, makes things worse.

So, why is John Kasich hellbent to mold Ohio into the image of the failed state of Texas?



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