News & Notes September 25, 2013
Notes: Democratic candidate for governor, Ed FitzGerald, challenges portions of Governor Kasich’s tax cuts. Ohio needs a tax system where the wealthiest Ohioans pay their fair share, where fairness for all is prioritized, and provides adequate revenues to invest in great public services that lead to stronger communities.
Note: Tax incentives have become a common tool to shift public resources to corporations and away from public services. When done appropriately, with clear objectives and agreements, tax incentives can be an additional tool in the bag of economic development plans. The state’s denial of the $100,000 tax credit highlights have speculative and subjective the state’s process is for handing out large checks to corporations.
Too often, corporations are given tax credits, political leaders claim victory for ‘creating jobs’, and never take a serious look at the impact of the tax incentive. Whether the office workers will be working to sell stocks, bonds, or ‘relationship devices’ it shouldn’t matter. Instead, when civic leaders choose to develop tax incentives, those incentives should be well-targeted at achieving an important governmental and community interest.