A Bad Trade for Ohioans
Here is the One Ohio Now press release in response to Governor Kasich’s press conference on Friday, July 13th about his proposed severance tax increase and income tax cut:
A Bad Trade For Ohioans
Income Tax Cuts Benefit the Wealthy; Oil and Gas Drillers Should Pay Their Fair Share
Columbus, OH – One Ohio Now, a broad-based coalition of over 60 organizations, responded to Governor Kasich’s press conference today. State Director Gavin DeVore Leonard said, “Thoughtful budgeting requires looking at both income and expenses. We’re glad to see the governor recognizes that oil and gas companies should pay their fair share, as all corporations should do. But, the Governor’s proposal doesn’t ensure the drillers pay an amount in line with other states’ policies.”
DeVore Leonard went on to say, “The Governor’s plan to swap any new revenue for an income tax cut is misguided. The trickle down theory of economics doesn’t work.” Cuts to Ohio’s income tax disproportionately benefit the wealthy, and no economic prosperity has come following the 21% cut to the income tax since 2005. According to the Institute on Taxation and Economic Policy, the middle fifth of Ohio residents by income on average would get about $42 annually from the proposed tax cut.
Funds for public services that employ our police, firefighters, and teachers have taken major hits in the current budget. DeVore Leonard concluded, stating, “Increasing revenue and offsetting it with tax cuts for the wealthy ignores the cuts made to local government, human services, and more. This swap won’t restore the cuts that are hurting our communities.”