I've made no secret of my distaste for Ohio Republican Governor John Kasich. The man should have never been elected. His banty-rooster approach to his job led directly to the rallying of worker-supporting Ohio voters to bury SB5 in the supply-side dumpster where it belongs just a few months ago.
For some reason, Kasich never tires of self-aggrandizement, even when he bases it on faulty assumptions....
“Over the last 14 months, it’s pretty remarkable what’s been accomplished,” Kasich said, adding later, “This is an ongoing process. Frankly, almost every time I turn around, I find another piece of broken Ohio, so there’s so much more to do.”
I don't think there's anything "remarkable" about paying off state debt by reducing revenues to communities, cities, counties, and public schools. The misery is simply pushed downline to the common folk, as it almost always is. As far as Ohio having "broken pieces" goes....I would suggest that if anything is broken in Ohio, it was broken when Kasich and Co. went after public sector union workers with a vengeance.
Other than that, it was Kasich's Crowd, the Lehman Bros-Wall Street Crowd, who "broke" Ohio....and 49 other states, with their irresponsibility. It was the deep recession caused by runaway, irresponsible, gambling houses of greed which temporarily "broke" Ohio. When Ohio was temporarily broken, Kasich worked for those who did the breaking. Kasich did his best to break Ohio even more with his numerous attempts to sell investment paper to public sector Ohio groups.....investment paper that proved valueless when Lehman Bros, LittleJohn's employer, went bankrupt.
Now comes LittleJohn the Redistributor. Having already cut state funding to cities, villages, communities and schools by 50%, in many cases....to mop up debt created by the Wall Street raid on America.....Kasich is now ready to propose a new tax increase. Yep. Can you believe it? A Republican Tea Party governor is proposing a tax increase.
The new plan?
Kasich, a Republican, and members of his cabinet unveiled details of the budget plan Wednesday during a two-hour press conference.
Severance taxes levied on oil and gas production from horizontal hydraulic fracturing will increase, with build-in breaks during the first year or two of operation to allow drillers to recoup their upfront costs.
The governor also has proposed about $1 billion in income tax cuts — which represents a decrease of about 5 percent per family — over the next five years, with rates reduced in relation to the taxes collected through fracking.
That is what a regressive redistribution of tax responsibilities looks like. A case study on supply side taxation. Instead of Kasich using suggested fracking tax revenues to resupply the communities, cities, counties and schools he slashed to balance the budget......Kasich has suggested cutting the state income tax instead.
Because the richest Ohioans pay more, dollars-wise, in state income tax than the rest of us.....the richest Ohioans will be the recipients of the bulk, dollars-wise, of Kasich's income tax reduction.
The frackers will, naturally, pass any tax increases on to all consumers of fossil-energy. That energy increase will affect average-income Ohioans more than Ohio's richest as a percentage of their income....which is why Kasich has proposed it.
Often, the left is accused of wanting to redistribute wealth to the undeserving. Taking from the Randian "makers" to coddle the "takers." However, what Kasich is proposing is a classic case of regressive redistribution. Taking from the many poor and average families to reward the rich few. In effect, Kasich would lower state income taxes, primarily benefiting the wealthiest Ohioans, and make everyone who uses fossil fuels pay for it.
This is part and parcel of the totally misguided theory of supply side economics. The thinking is that if the rich "shakers" get all the tax and fiscal breaks, they will shake their entrepernuerial booty and lift everyone's boat. For 30 years it hasn't worked for average working families....but LittleJohn wants to beat that dead horse one more time. The thinking is that if Ohio income taxes are low, or zero,.....more ultra-rich "shakers" will move to, or remain in, Ohio, rather than beat feet to a no-income-tax state. There's no evidence that the rich migrate to no-income tax states by any significant measure.....but evidence has nothing to do with supply side economic dogma. It is entirely faith-based. Just believe.
Some may say, as they have misleadingly said in the past, that all Ohio income tax payers will benefit from a state income tax reduction. Yes, there is some truth to that claim....however, just as we saw with Bush's deep tax cuts of the 00's.....the wealthy few are the ones who benefit the most. The fact that the rich will benefit the most is the very reason why Kasich is proposing his regressive redistributionist plan.
More than likely, the increase on natural gas and heating oil costs will more than wipe out any state income tax reduction benefit for average Ohio families gained through Kasich's income tax reductions. That will not be true, however, for the wealthy few in Ohio.
Ohioans should raise their voices and reject this regressive Kasich plan.
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