Gov. Kasich with excellent tax reform/cuts plan!!

• QuakerOats

  Kudos to the Governor for another tremendous plan aimed at improving Ohio's economy and business climate:
  
  "Governor Kasich will unveil his biennial budget this afternoon. It will contain a bold and innovative mechanism for reducing state personal income tax rates.
  
  The governor proposes to lower the personal income tax rate by 20% over three years. In addition, he would cut by 50% the tax rate on the first $750,000 of income of owners of &#8220ass through” entities.
  
  The latter is an innovative way to free up working capital for small manufacturers and other businesses.
  
  The governor also will reduce the state sales tax rate from 5 ½% to 5%.
  
  Here’s how he pays for it: he would extend the sales tax base to the service sector (except for: food, shelter, housing, medical care, educational services and religious services). This’ll be controversial, to say the least.
  
  Here is what the governor is not doing: touching the commercial activities tax, or placing additional taxes on goods."
  
  
  
  Wow! Somebody who actually 'gets it'!!! Excellent!!
• Devils Advocate

  

  Too bad your property taxes will go up 20%
  
  Your car repairs are going up
  
  Your gun repairs ar going up.....
  
  
  Hey Peter! Grab your gun, I want you to meet Paul!
  
  Your legal fees are going up.
• QuakerOats

  Property taxes are not going up 20%, unless you live in a school district where the union mob-run public school monopoly has infiltrated your school board and can extort more.
• Devils Advocate

  

  ^^^^^^if the levy passes this fall, my property taxes will be up 15% since Kashich took office. Part of his plan is to cut state funding for schools yet again.
  
  there is no union in my school district, so I guess you are wrong yet again (go figure )
• QuakerOats

  ^^ This is exactly as it should be: localities deciding for themselves how much to spend on their own local schools. Bravo. You will have a 20%+ state income tax cut going back into your pocket -- if you want to spend some of that on your local issues, please do.
  
  Next...
• Devils Advocate

  

  QuakerOats;1381780 wrote:^^ This is exactly as it should be: localities deciding for themselves how much to spend on their own local schools. Bravo. You will have a 20%+ state income tax cut going back into your pocket -- if you want to spend some of that on your local issues, please do.
  
  Next...

  I'll be upsidedown about 5,000.00 a year with my rental properties. there is no way that the income tax reduction will come close to covering 25% of that.
  
  Oh and you for got to mention that your republican "savior" is onboard with Obamacare.
  
  http://www.daytondailynews.com/news/news/state-regional-govt-politics/kasich-expands-medicaid-under-obamacare/nWFwf/
  
  [QUOTEKasich opposed the health care law, known as Obamacare, but said he sees the Medicaid expansion differently. “Some of the poorest Ohioans, they get their primary care in an emergency room,” Kasich said. “When they go visit these emergency rooms and cannot pay, we all pay for it.”
  The expansion of Medicaid, the publicly funded insurance program for the poor, would extend coverage to Ohioans earning up to 138 percent of poverty, or up to $15,415 a year for an individual. Ohio Medicaid currently covers 2.3 million poor and disabled people, an expense of $19 billion in state and federal money a year.
  ][/QUOTE]
• Gblock

  seems like this will end in a wash if you ask me...u save on income tax but pay more in sales tax for services
• pmoney25

  

  Gblock;1381901 wrote:seems like this will end in a wash if you ask me...u save on income tax but pay more in sales tax for services

  
  Difference is sales tax is a choice while income tax is theft.
• BoatShoes

  pmoney25;1381915 wrote:Difference is sales tax is a choice while income tax is theft.

  Only true if a person didn't actually choose to work in Ohio as opposed to Florida where there is no income tax and they're guaranteed the right to travel to in the Constitution. Oh wait.
• Gblock

  pmoney25;1381915 wrote:Difference is sales tax is a choice while income tax is theft.

  not exactly..if you are raising taxes on things that i really dont have a choice not to use then it is almost the same...i cant just stop getting my oil changed or other services that are must haves. its not like buying a tv or a car..im not saying i disagree with trying it or that it wont work for our state as a whole i just dont know how much i will save as an individual
• Bigdogg

  Kasich's tax proposals will take Ohio in wrong direction by shifting a greater share of taxes onto lower- and middle-income Ohioans, while reducing the revenue needed to support vital public services. Taft tried cutting income-tax rates 21 percent eight years ago, and it didn't work; we have seen worse job, income and output performance over that time than the country as a whole. He is also moving from a progressive tax policy to a regressive consumption tax. Because the income tax is progressive, a 20% cut to rates doesn’t mean an equal reduction in everyone’s tax rates. Take a look at this chart:
  
  
  
  If you subtract the new rate after the cut to the current rate, you’ll see that Kasich’s tax reform lowers the lowest marginal rate by less than .12%. However, the top margin rate is reduced by nearly 1.19%. That means the top margin rates will see a reduction in the rate that is almost ten times larger that the lowest marginal rates will see a reduction in their rates.
  
  Kasich is the worst governor in the state's history and after Taft, I never thought that would be possible.
• WebFire

  Gblock;1381992 wrote:not exactly..if you are raising taxes on things that i really dont have a choice not to use then it is almost the same...i cant just stop getting my oil changed or other services that are must haves. its not like buying a tv or a car..im not saying i disagree with trying it or that it wont work for our state as a whole i just dont know how much i will save as an individual

  Changing oil is a bad example, since you can do it yourself. Just sayin'.
• Gblock

  WebFire;1382048 wrote:Changing oil is a bad example, since you can do it yourself. Just sayin'.

  
  pfffssssh...i tried that once..never again lol
• QuakerOats

  Gblock;1381992 wrote:not exactly..if you are raising taxes on things that i really dont have a choice not to use then it is almost the same...i cant just stop getting my oil changed or other services that are must haves. its not like buying a tv or a car..im not saying i disagree with trying it or that it wont work for our state as a whole i just dont know how much i will save as an individual

  
  Not only do you get a 20%+ income tax cut, you also get a 9% sales tax cut (from 5.5% down to 5%). Thus, even if you have to pay sales tax on a couple of items that were previously untaxed, you can pay for that out of your 9% sales tax cut on all other items.
  
  Many lefties on here just spent a year railing against 'loopholes' and 'fairness' etc... so here is aproposal that broadens the base (which is fair), closes loopholes (on those who didn't have to charge sales tax) which is fair, and lowers the overall rate. This is a beautiful thing, yet the hypocrites are coming out of the woodwork it seems.
• QuakerOats

  Bigdogg;1382043 wrote:Kasich's tax proposals will take Ohio in wrong direction

  
  Completey incorrect ...... as evidenced by the comments from the economics professors at Ohio State, Ohio U, and Dayton ......... and anyone else with half a brain.
• se-alum

  

  There's no way you would spend as much in taxes on services as you would save with the 20% income tax reductions.
• Gblock

  Im all for broadening the tax base for sure...so if i paid 2500 in ohio income tax last year and 1800 in columbus income tax your saying i will save 20 percent on both? or just the 2500x.25=625$?
  
  sorry 2500x.20=500
• sleeper

  

  Bigdogg;1382043 wrote:Kasich's tax proposals will take Ohio in wrong direction by shifting a greater share of taxes onto lower- and middle-income Ohioans, while reducing the revenue needed to support vital public services. Taft tried cutting income-tax rates 21 percent eight years ago, and it didn't work; we have seen worse job, income and output performance over that time than the country as a whole. He is also moving from a progressive tax policy to a regressive consumption tax. Because the income tax is progressive, a 20% cut to rates doesn’t mean an equal reduction in everyone’s tax rates. Take a look at this chart:
  
  
  
  If you subtract the new rate after the cut to the current rate, you’ll see that Kasich’s tax reform lowers the lowest marginal rate by less than .12%. However, the top margin rate is reduced by nearly 1.19%. That means the top margin rates will see a reduction in the rate that is almost ten times larger that the lowest marginal rates will see a reduction in their rates.
  
  Kasich is the worst governor in the state's history and after Taft, I never thought that would be possible.

  I support raising taxes on the poor and middle class. They aren't paying their "fair share".
• QuakerOats

  Kasich Taxation Innovation

  On February 4, as he unveiled his biennial budget, Governor Kasich proposed a 50 percent personal income tax exclusion from the first $750,000 of income for owners of pass-through entities. The OMA called the governors’ plan “truly innovative.” “The effect of this specific proposal would be to free up much-needed working capital for small businesses across Ohio, increasing job-creating investment in those companies. The proposed personal income tax reduction also would help entrepreneurs in early-stage businesses where the risks are high and working capital often is in short supply,” said OMA president Eric Burkland in a release to the media. The governor’s proposal includes a 20 percent reduction in all personal income tax rates. The governor pays for the personal income tax rate reductions by broadening the sales tax base to services and increasing the state severance tax on the extraction of oil and gas using horizontal drilling. Broadening the sales tax base also allows the governor to lower the sales tax rate from 5.5 percent to 5 percent. OMA tax counsel Mark Engle of Bricker & Eckler LLC writes in a summary of the governor’s proposal: “This proposal reflects a policy decision to shift Ohio’s revenue sources from income and investment to consumption.” This is a welcome policy decision for Ohio manufacturing. 2/6/2013

• Bigdogg

  QuakerOats;1385425 wrote:

  Kasich Taxation Innovation

  On February 4, as he unveiled his biennial budget, Governor Kasich proposed a 50 percent personal income tax exclusion from the first $750,000 of income for owners of pass-through entities. The OMA called the governors’ plan “truly innovative.” “The effect of this specific proposal would be to free up much-needed working capital for small businesses across Ohio, increasing job-creating investment in those companies. The proposed personal income tax reduction also would help entrepreneurs in early-stage businesses where the risks are high and working capital often is in short supply,” said OMA president Eric Burkland in a release to the media. The governor’s proposal includes a 20 percent reduction in all personal income tax rates. The governor pays for the personal income tax rate reductions by broadening the sales tax base to services and increasing the state severance tax on the extraction of oil and gas using horizontal drilling. Broadening the sales tax base also allows the governor to lower the sales tax rate from 5.5 percent to 5 percent. OMA tax counsel Mark Engle of Bricker & Eckler LLC writes in a summary of the governor’s proposal: “This proposal reflects a policy decision to shift Ohio’s revenue sources from income and investment to consumption.” This is a welcome policy decision for Ohio manufacturing. 2/6/2013

  Kasich proposals are a rehash of failed proposals and trickle down voodoo economics that do not work. Lots of study's disagreeing with you. The sources you cite are right wing nuts who would support anything out of the argent ass's mouth. I look for the Tea baggers to run an appoint againt Kasich.
  
  
  Careful economic studies issued by organizations across the political spectrum show that there is just no relationship between state personal income tax levels and the decisions of people in a state to start a business and of would-be entrepreneurs to move to the state. A rigorous 2012 study commissioned by the U.S. Small Business Administration found “no evidence of an economically significant effect of state tax portfolios on entrepreneurial activity.[1] In fact, considerable research shows that many entrepreneurial firms spin off from or otherwise “cluster” in geographic areas where other firms in the industry have concentrated. It is highly unlikely that the meager tax savings arising from state personal income tax cuts would overcome the benefits of locating near other firms in the same industry.
  

  There are better alternatives than tax cuts to help small businesses succeed, such as specially-tailored worker training, making it easier for entrepreneurs to turn the findings of state university research into commercially-viable goods and services, and providing strategic advice. These more direct approaches offer a much bigger “bang for the buck” than personal income tax cuts. States also can broadly promote long-term economic growth by investing in strong schools, cutting-edge research universities, modern transportation and broadband networks, efficient court systems, and other fundamental public services that reduce business expenses and improve the local quality of life. By reducing revenue, personal income tax cuts make it harder for states to invest in these and other public services that form the foundation of future economic growth. So personal income tax cuts not only don’t help small businesses to grow but they can end up being counterproductive.

  http://www.cbpp.org/cms/index.cfm?fa=view&id=3904
  
  
  Vorys, Sater, Seymour and Pease, one of Ohio largest and most respected Ohio law firms, put out an an analysis of Governor Kasich’s new sales tax plan. From their analysis:
  

  This tax expansion will hit Ohio businesses most directly and hardest although individual consumers will bear the brunt of these new taxes in the form of higher prices for the things they typically buy and use. All businesses should analyze the bill carefully, both from a perspective of sales and purchases.

  While the income tax reductions are positive, of concern to OSCPA is the tradeoff for the tax cuts: expanding the Ohio sales tax base to include all services other than those in the broad categories of education, medical and housing. This means accounting, legal, consulting and numerous other professional services would be impacted.
  
  
  The Ohio Society of CPA
  Scott Wiley, CAE, president and CEO, said OSCPA has long opposed a sales tax on accounting and other services.
  
  “Rest assured, we will proactively engage in discussions with the administration on this proposal as the budget process proceeds, and our members input will be vital in framing those discussions effectively,” Wiley said.

• Gblock

  I saw they are taxing bowling?? wtf
• Cleveland Buck

  

  If it is revenue neutral then it is not a tax cut.
• QuakerOats

  Bigdogg --- obviously you are going to find a group like the Ohio Society of CPA's, who up till now did not charge sales tax on their service billings, being opposed to the change. That is a natural reaction. But why should the guy doing your lawn work have to charge tax, but not the guy doing your tax work? Just because the accountant or lawyer doesn't want to add the tax to his billing (because he is either lazy, or doesn't want to appear he is increasing his prices) doesn't mean it shouldn't have been happening all along. They can either add it in and pass it along; or suck it up and reduce their fees by 5%; it isn't the end of the world. What it is, is fairness, broadening the base, along with a reduction in the rate over all. There is no way that this is not a win/win.
  
  
  Carry on ...
• Bigdogg

  QuakerOats;1393726 wrote:Bigdogg --- obviously you are going to find a group like the Ohio Society of CPA's, who up till now did not charge sales tax on their service billings, being opposed to the change. That is a natural reaction. But why should the guy doing your lawn work have to charge tax, but not the guy doing your tax work? Just because the accountant or lawyer doesn't want to add the tax to his billing (because he is either lazy, or doesn't want to appear he is increasing his prices) doesn't mean it shouldn't have been happening all along. They can either add it in and pass it along; or suck it up and reduce their fees by 5%; it isn't the end of the world. What it is, is fairness, broadening the base, along with a reduction in the rate over all. There is no way that this is not a win/win.
  
  
  Carry on ...

  No problem private Pyle, I will. You might want to check out the states that have already tried to do this. Not worked out well for them. In Ohio it will be worse. You think P&G will use an Ohio CPA firm when they can go across the river for cheaper? As a business man I am sure you know what the costs of a good audit is correct?
• FatHobbit

  

  Bigdogg;1393609 wrote:A rigorous 2012 study commissioned by the U.S. Small Business Administration found “no evidence of an economically significant effect of state tax portfolios on entrepreneurial activity.[1] In fact, considerable research shows that many entrepreneurial firms spin off from or otherwise “cluster” in geographic areas where other firms in the industry have concentrated. It is highly unlikely that the meager tax savings arising from state personal income tax cuts would overcome the benefits of locating near other firms in the same industry.

  Bigdogg;1393752 wrote:No problem private Pyle, I will. You might want to check out the states that have already tried to do this. Not worked out well for them. In Ohio it will be worse. You think P&G will use an Ohio CPA firm when they can go across the river for cheaper? As a business man I am sure you know what the costs of a good audit is correct?

  I'm confused. Do you think taxes dont affect businesses (first quote) or they do affect businesses (second quote)?