• Nick Bates

Budget Fact Check

Fact check image 13014

Budget Fact Check

Governor Kasich spoke to the Ohio Chamber of Commerce  (Click for the video of his comments) on tax policy and his desire to lower income taxes. He made many claims including the idea that ‘high’ income taxes will cause people to leave a state and low taxes will draw people in. However, research does not support this claim.

The Center on Budget and Policy Priorities released a report that shows that only 1.7% of Americans moved between states and that most people move for new jobs, cheaper housing, or a better climate. The study highlights that in the mid 2000’s people moved away from Florida as housing prices began to spike and that people did not flee New Jersey in 2004 as a result of tax increases in that state.

A study by Policy Matters Ohio  identifies that people are likely to move to for jobs, family, better salaries, and affordable housing. They found no correlation between tax rates and interstate migration. 

The Economic Policy Institute’s research finds that a well trained workforce is key to attracting and building a state’s economy.

Income tax cuts have not worked in Ohio: Proponents for tax cuts claim that they will create jobs. However, it just simply has not happened. Since 2005’s 21% income tax cut we are fourth to last for job creation  among the states. Florida and Nevada – two states with no income tax – have also performed very poorly.  There is no correlation between job creation and tax rates. Ohio needs a new approach, because tax cuts just aren’t working.

0 views0 comments

Recent Posts

See All

I love data. I love numbers. I love debates about the LGF, PLF, TPP, and revenue sharing. I love local share debates around school funding formulas and of course Medicaid group 8. Sadly, nobody else s

The New York Times reported recently that President Donald Trump paid only $750 in federal income taxes in 2016 and in 2017. How is this possible for a person who is allegedly making a lot of money? S