Kasich’s budget plan includes tax cuts

“These provisions deserve longer, deeper consideration because these really are serious policy matters”
Associated Press
May 22, 2014
State senators passed a package of new tax cuts and adjustments to teachers’ performance evaluations on Wednesday as components of Gov. John Kasich’s midterm budget plan lurched closer to his desk.

The tax and education ideas were among a slew of policy changes contained separate midterm budget bills approved by the Senate. The House passed earlier versions of the measures. A joint conference committee would likely be appointed to work out the differences in the legislation, a House spokesman said.

One sweeping budget bill including tax provisions supported by the Republican governor passed on a 24-8 vote. The legislation would accelerate a planned income-tax cut and expand certain exemptions and credits.

The provisions, not included in the House version, would double the earned income tax credit available to low-income Ohioans from 5 percent to 10 percent of the federal credit. It also would increase a small business tax cut from 50 percent to 75 percent on income up to $250,000 for the 2014 tax year and raise personal income tax exemptions for taxpayers making under $80,000 a year.

The administration said stronger state revenue than expected would allow for the cuts, estimated at $402 million.

Senate Finance Chairman Scott Oelslager, a Canton Republican, reminded his colleagues that the state’s unemployment rate dropped in April to 5.7 percent, the lowest level in more than six years.

“We need to keep this momentum going,” Oelslager said, adding that the tax policy changes would help.

Democrats said the bill was a missed opportunity to invest additional money in schools and communities, not tax cuts. They claimed hefty policy issues keep turning up in budget bills and should get getting more deliberation.

“These provisions deserve longer, deeper consideration because these really are serious policy matters,” said Sen. Tom Sawyer, an Akron Democrat.

Sawyer cited one such provision that states college athletes are not employees under state law. The status of fullscholarship football players became an issue in March after a federal labor official ruled Northwestern University players are employees and have a right to unionize.

Democrats sought a number of changes to the tax bill but were largely unsuccessful. An education-related budget bill, however, saw less debate. Senators passed it on a 27-5 vote.

The plan includes adjustments to teachers’ performance evaluations. It specifies that in the course of testing, certain student information — such as Social Security numbers, religion and political affiliation — cannot be collected and shared with any entity, including the federal or state governments.

Other pieces of the education proposal were aimed at asserting the role of local school districts in implementing Ohio’s new learning standards.

The bill states that a school district board has the authority to determine the curriculum, textbooks and course materials used in Ohio classrooms. It also would require districts to provide parents an opportunity to review the instruction materials.

School districts and teachers would get a one-year reprieve from funding penalties or job sanctions tied to new state learning and teacher-evaluation standards.

“Basically, we are going to act as if this year, from a penalty point of view, does not exist,” said Sen. Peggy Lehner, a Kettering Republican and chairwoman of the Senate Education Committee.

Budget bill changes
The Ohio Senate added and changed provisions in a sweeping midterm budget bill that it passed on Wednesday. Some of the proposals in H.B. 483 would:
 
•Increase small business income-tax reductions to 75 percent from 50 percent for tax year 2014. 
 
•Raise personal income-tax exemptions for low- and middle-income taxpayers making under $80,000 a year.

•Double the earned income tax credit available to low-income Ohioans from 5 percent to 10 percent of the federal credit.

 
•Get rid of a $500,000 pilot program to provide businesses with technical assistance related to market research, marketing and the development of connections with other businesses and resource providers.
 
•Scrap increases to fees for nonresident deer permits and hunting licenses. 
 
•Create an official public notice website for the state, to be operated and maintained by the Ohio newspaper industry.
 
•Replace the words “handicapped” and “disabled” with “accessible” on new or replacement signage indicating access.
 
•Limit the authority of the state Controlling Board to approve certain increases in appropriation authority.
 
•Create a Maritime Port Funding Study Committee.
 
•Reinstate the requirement that the director of the state’s pharmacy board be a licensed pharmacist.
 
•Remove a proposal for a high school dropout prevention and recovery program, along with the $5 million set aside for it.
 
•Require wind turbines to be set back at least 1,125 feet from the nearest property line.
 
•Bar unpaid police officers from issuing citations for Motor Vehicles Law violations.
 
Source: Senate Finance Committee

Comments

JMOP

In the very last line
"Bar unpaid police officers from issuing citations for Motor Vehicles Law violations."

What's that about?

Pete

Traffic cameras maybe?

MI Smooth

More than likely it means unpaid auxiliary officers in small villages that use their police departments as revenue generators.

JMOP

Thank you Pete and MI Smooth.

Dr. Information

Giving more people back their hard earned money is exactly what this state and nation needs. Kudos governor.

Pete

The complaining will begin on here when those that consume others hard earned money finally roll out of bed and hop online.

Tax consumers do not care about the burden on tax payers. They see our money as theirs. It is disgusting actually.

The Big Dog's back

You right wingnuts drive on the same roads, use the same utilities, use the same same police and fire protection. Time to ANTE UP!

Pete

I do pay, do you?

Or do you take every deduction you possibly can and end up zero sum? I can't believe with minimum wage your tax burden is very high.

The Big Dog's back

pete, your comebacks are like you, empty and no substance.

Contango

Re: "Democrats said the bill was a missed opportunity to invest additional money in schools and communities, not tax cuts."

Fine.

Let the Dems, take their tax cut money and "invest" in schools and communities.

Dirty lil' secret:

Businesses DO NOT pay taxes. They pass them on to the end user in the form of higher prices for their products or services.

IOW:

Individuals pay their own taxes PLUS those of business. Individuals get taxed TWICE.

The marginal state business and individual income tax rate should be: 0%.

The Big Dog's back

Dirty lil' secret, that's hogwash.

The Big Dog's back

You know pooh, that thing about businesses passing it on to the consumers is so 80ish. If that were the case, then why do businesses spend so much money advocating against higher taxes on them? Oh, because they are thinking of us? Yeah, right.

The Big Dog's back

Actually what higher taxes on businesses does is make them more innovative.

Pete

Innovative? Like leaving their overseas profits there instead of repatriating them and investing in this country?

I honestly hope you're a troll and not nearly as ignorant as you come across as on here.

The Big Dog's back

Sounds like you're in favor of a law to close that loophole. Congrats pete, is this the start of you coming in from the far right edge?

Pete

Actually the 35% you moochers want to thieve from already taxed profits needs to go away.

And post after post, you prove you're not a troll. So you must be ignorant.

It's sad really, but that's what an NEA/AFT education does for a person.

njs60

He'll cut more funding to schools and the local governments to pay for it.In the end the taxpayer pays.