Excerpt from
Proposed tax hikes torch Ohio Gov. Kasich's reform narrative - Watchdog.org
Proposed tax hikes torch Ohio Gov. Kasichs reform narrative
By Jason Hart / March 9, 2015 / No Comments
Among the many revenue changes in House Bill 64 is a $1 per pack cigarette tax hike Kasich pitches as good for public health although he seeks to impose the new rate on far less harmful e-cigarettes, as well.
As introduced, HB 64 would sharply increase taxes on hydraulic fracturing or fracking for crude oil and natural gas, a revenue stream Kasich has overestimated in the past. The bill also calls for a 23 percent increase in the Commercial Activity Tax, created only 10 years ago.
Tax Foundation analyst Scott Drenkard was even critical of Kasichs proposal to exempt from the income tax the first $2 million in small business revenue one of the governors key HB 64 tax reform recommendations.
Drenkard explained to the Ways and Means committee why Tax Foundation advises against such exemptions, expanding on points he made in a recent Forbes column.
The idea for excluding small businesses from tax liability is to promote job creation and growth in the state, but the unintended consequence of this policy is that it allows wage earners to change their structure to avoid paying any income taxes, Drenkard told the committee.
Drenkard described several of Kasichs proposed tax hikes as particularly economically damaging and non-transparent, calling the Commercial Activity Tax the states most growth-damaging tax and warning a cigarette tax hike would increase cigarette smuggling.
A huge e-cigarette tax hike would run counter to Kasichs stated goal of curbing tobacco use, Drenkard explained, noting e-cigarettes contain thousands fewer chemicals than cigarettes.
The budget as proposed has glaring problems that amount to a slew of tax changes without a central theme, Drenkard told the House Ways and Means Committee.
Others testifying at the Wednesday hearing were there to support the cigarette tax hike, which several health experts endorsed as a way to limit smoking and reduce Medicaid costs.
Dr. Jim Duffee of the Ohio Chapter of the American Academy of Pediatrics testified that e-cigs which contain no tobacco should be taxed as if they were tobacco products.
Given the fact that e-cigs are most often used as a substitute for cigarettes, I strongly believe that equitable taxation between cigarettes, other tobacco products and e-cigs is perfectly justified and is in the best interest of public health and Ohios children, Duffee told the committee.
Union front One Ohio Now, meanwhile, criticized Kasichs proposed sales tax hike, arguing against HB 64s income tax cuts and for even more dramatic spending increases.
Although the General Assembly is certain to block at least some of Kasichs proposed tax hikes, Kasich is just as certain to leverage any net tax cut as a distraction from his budget-busting Obamacare Medicaid expansion.
At $523 million over two years, the governors proposed annual tax cut would amount to less than the monthly cost of his Obamacare expansion, which has cost roughly $300 million per month since December.
Because Cleveland Clinic is LOVING the expanded Medicare/Medicaid (that's another discussion!) and Kasich wants to keep them happy!
In an attempt to bolster his reform credentials, Kasich is traveling the country promoting a federal balanced budget amendment while his Obamacare expansion burns through billions in new federal spending.
Please. Contact your state congressman/woman and tell them HB 64's e-cigarette tax is a bad idea!!
Proposed tax hikes torch Ohio Gov. Kasich's reform narrative - Watchdog.org
Proposed tax hikes torch Ohio Gov. Kasichs reform narrative
By Jason Hart / March 9, 2015 / No Comments
Among the many revenue changes in House Bill 64 is a $1 per pack cigarette tax hike Kasich pitches as good for public health although he seeks to impose the new rate on far less harmful e-cigarettes, as well.
As introduced, HB 64 would sharply increase taxes on hydraulic fracturing or fracking for crude oil and natural gas, a revenue stream Kasich has overestimated in the past. The bill also calls for a 23 percent increase in the Commercial Activity Tax, created only 10 years ago.
Tax Foundation analyst Scott Drenkard was even critical of Kasichs proposal to exempt from the income tax the first $2 million in small business revenue one of the governors key HB 64 tax reform recommendations.
Drenkard explained to the Ways and Means committee why Tax Foundation advises against such exemptions, expanding on points he made in a recent Forbes column.
The idea for excluding small businesses from tax liability is to promote job creation and growth in the state, but the unintended consequence of this policy is that it allows wage earners to change their structure to avoid paying any income taxes, Drenkard told the committee.
Drenkard described several of Kasichs proposed tax hikes as particularly economically damaging and non-transparent, calling the Commercial Activity Tax the states most growth-damaging tax and warning a cigarette tax hike would increase cigarette smuggling.
A huge e-cigarette tax hike would run counter to Kasichs stated goal of curbing tobacco use, Drenkard explained, noting e-cigarettes contain thousands fewer chemicals than cigarettes.
The budget as proposed has glaring problems that amount to a slew of tax changes without a central theme, Drenkard told the House Ways and Means Committee.
Others testifying at the Wednesday hearing were there to support the cigarette tax hike, which several health experts endorsed as a way to limit smoking and reduce Medicaid costs.
Dr. Jim Duffee of the Ohio Chapter of the American Academy of Pediatrics testified that e-cigs which contain no tobacco should be taxed as if they were tobacco products.
Given the fact that e-cigs are most often used as a substitute for cigarettes, I strongly believe that equitable taxation between cigarettes, other tobacco products and e-cigs is perfectly justified and is in the best interest of public health and Ohios children, Duffee told the committee.
Union front One Ohio Now, meanwhile, criticized Kasichs proposed sales tax hike, arguing against HB 64s income tax cuts and for even more dramatic spending increases.
Although the General Assembly is certain to block at least some of Kasichs proposed tax hikes, Kasich is just as certain to leverage any net tax cut as a distraction from his budget-busting Obamacare Medicaid expansion.
At $523 million over two years, the governors proposed annual tax cut would amount to less than the monthly cost of his Obamacare expansion, which has cost roughly $300 million per month since December.
Because Cleveland Clinic is LOVING the expanded Medicare/Medicaid (that's another discussion!) and Kasich wants to keep them happy!
In an attempt to bolster his reform credentials, Kasich is traveling the country promoting a federal balanced budget amendment while his Obamacare expansion burns through billions in new federal spending.
Please. Contact your state congressman/woman and tell them HB 64's e-cigarette tax is a bad idea!!
