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00:00:00>> SUPPORT FOR THE STATEWIDE
BROADCAST OF "THE STATE OF OHIO"
00:00:10-- HELPING BUSINESSES AND
INDIVIDUALS SOLVE COMPLEX LEGAL
00:00:12PROBLEMS THROUGHOUT OHIO, ACROSS
THE COUNTRY, AND THE WORLD.
00:00:14ON THE WEB AT PORTERWRIGHT.COM.
AND FROM THE OHIO EDUCATION
00:00:20ASSOCIATION, REPRESENTING
121,000 FACULTY COMMITTED TO THE
00:00:25SUCCESS OF EVERY CHILD.
ONLINE AT OHEA.ORG.
00:00:27>> THE GOVERNOR GETS A LOT OF
PRACTICE ON HIS SIGNATURE, AS HE
00:00:32SIGNS A SMALL SEA OF BILLS.
AND TWO POLICY WATCHERS ARE HERE
00:00:35TO DEBATE THE EFFECTS OF GOV.
KASICH'S TAX CHANGES ON VOTERS.
00:00:37ALL THIS WEEK IN "THE STATE OF
OHIO".
00:00:39?
>> GOVERNOR JOHN KASICH HAS GONE
00:00:55THROUGH A LOT OF PENS IN THE
LAST WEEK, SIGNING INTO LAW A
00:00:57BIG STACK OF BILLS THAT
LAWMAKERS PASSED BEFORE LEAVING
00:00:59CAPITOL SQUARE FOR A SUMMER
CAMPAIGN BREAK. KASICH SIGNED
00:01:01MORE THAN TWO DOZEN BILLS OVER
THE LAST FEW DAYS, INCLUDING THE
00:01:05MAIN APPROPRIATIONS BILL THAT
WAS PART OF HIS BUDGET UPDATE
00:01:09CALLED THE MID-BIENNIUM REVIEW
OR MBR.
00:01:13THAT MEASURE INCLUDES AN
ACCELERATION OF THE PERSONAL
00:01:16INCOME TAX CUT IN THE REGULAR
TWO-YEAR BUDGET, AS WELL AS
00:01:18ANOTHER TAX CUT FOR SMALL
BUSINESSES. BUT IT ALSO INCLUDES
00:01:20A DOUBLING OF OHIO'S
EARNED-INCOME TAX CREDIT TO 10
00:01:23PERCENT FOR LOW-INCOME
TAXPAYERS, AND AN INCREASE IN
00:01:27THE PERSONAL INCOME-TAX
EXEMPTIONS FOR PEOPLE MAKING
00:01:29UNDER $80,000 A YEAR. KASICH
SAID WHILE HE TALKS A LOT ABOUT
00:01:32LOWERING THE TOP INCOME TAX
RATE, THIS BUDGET UPDATE PROVES
00:01:36HE SUPPORTS ACTIONS FOR
LOWER-INCOME OHIOANS AS WELL.
00:01:40KASICH SIGNED THE BILL IN THE
HEADQUARTERS OF THE MID-OHIO
00:01:43FOOD BANK, TO DRAW ATTENTION TO
THE PROVISIONS THAT HELP
00:01:46LOWER-INCOME TAXPAYERS AND
ALLOWED LISA HAMLER-FUGITT WITH
00:01:50THE OHIO ASSOCIATION OF FOOD
BANKS TO DOT THE "I". THE EVENT
00:01:53INCLUDED AN INTERESTING GROUP OF
SPEAKERS, INCLUDING TWO
00:01:56CONSERVATIVE REPUBLICAN
LAWMAKERS, REP. LYNN WACHTMANN
00:01:59OF NAPOLEON IN NORTHWEST OHIO
AND SEN. BILL COLEY OF
00:02:05CINCINNATI.
ALSO THERE, PHIL COLE FROM THE
00:02:10OHIO ASSOCIATION OF COMMUNITY
ACTION AGENCIES, AND FORMER
00:02:12DEMOCRATIC COLUMBUS CITY COUNCIL
PRESIDENT MATT HABASH, WHO HEADS
00:02:14THE MID-OHIO FOOD BANK. KASICH
HELD A SECOND CEREMONIAL SIGNING
00:02:16OF THE BILL AT A SCHOOL IN
CLEVELAND A FEW DAYS LATER, TO
00:02:19HIGHLIGHT EDUCATIONAL COMPONENTS
OF IT. BUT DEMOCRATIC
00:02:22GUBERNATORIAL CHALLENGER ED
FITZGERALD SAID THE MBR DOES
00:02:27LITTLE TO RESTORE CUTS HE'S MADE
TO SCHOOLS AND TO LOCAL
00:02:30GOVERNMENTS.
KASICH ALSO SIGNED SOME OTHER
00:02:34MBR BILLS - ONE MAKING CHANGES
IN K-12 EDUCATION AT BUCKEYE
00:02:38GIRLS' STATE AT THE UNIVERSITY
OF MOUNT UNION IN ALLIANCE.
00:02:45HE SIGNED THE MBR RELATED TO
HIGHER ED CHANGES AT BUCKEYE
00:02:47BOYS' STATE AT BOWLING GREEN
STATE UNIVERSITY LAST WEEK (HB
00:02:51-- WEEK.
BUT THERE ARE STILL PARTS OF HIS
00:02:54MBR THAT HAVEN'T BEEN DEALT
WITH, INCLUDING HIS PROPOSED
00:02:56INCREASE IN THE TAX ON
CIGARETTES, HIS HIKE IN THE
00:02:58SEVERANCE TAX ON OIL AND NATURAL
GAS DRILLERS AND HIS INCREASE IN
00:03:00THE COMMERCIAL ACTIVITY TAX.
THE GOVERNOR ALSO SIGNED A BUNCH
00:03:03OF OTHER BILLS.
TWO OF THEM ARE RELATED TO
00:03:06OPIOID ABUSE ONE REQUIRING
PARENTS OR GUARDIANS TO CONSENT
00:03:09TO PRESCRIPTIONS FOR PAINKILLERS
FOR MINORS AND ANOTHER REQUIRING
00:03:13HOME HOSPICE PROGRAMS COLLECT
UNUSED PAINKILLERS AFTER
00:03:21PATIENTS' DEATHS, LAWS ALLOWING
COLLEGE CREDIT FOR MILITARY
00:03:23TRAINING, REQUIRING INSURERS TO
COVER CHEMOTHERAPY PILLS, AND
00:03:25REQUIRING A "SUDDEN UNEXPLAINED
INFANT DEATH SYNDROME" FORM IN
00:03:29THE DEATH OF A CHILD YOUNGER
THAN ONE YEAR OLD.
00:03:33HE ALSO SIGNED A LAW CREATING
"SAFE DRIVING AWARENESS MONTH"
00:03:37IN SEPTEMBER, IN PART BECAUSE OF
THE EFFORTS OF COLUMBUS TV
00:03:39SPORTS ANCHOR DOM TIBERI AFTER
THE DEATH OF HIS DAUGHTER IN A
00:03:45TRAFFIC CRASH LAST YEAR.
HE SIGNED THE THE "END DEMAND
00:03:47ACT" TO INCREASE PENALTIES FOR
"JOHNS" WHO BUY SEX FROM MINORS
00:03:50AND INCREASING THE RIGHTS OF
THOSE VICTIMS.
00:03:54HE SIGNED A CHANGE TO REQUIRE
THE STATE TO AUTOMATICALLY
00:03:56NOTIFY BUSINESSES OF TAX
OVERPAYMENTS AND ISSUE REFUNDS
00:03:58OR CREDITS WITHOUT BUSINESSES
HAVING TO APPLY FOR THEM, AND
00:04:04HE SIGNED THE REQUIREMENT THAT
PUBLIC HIGH SCHOOLS PUBLISH
00:04:06ANNUAL CAREER DECISION GUIDES ON
THEIR WEBSITES OR IN
00:04:08NEWSLETTERS.
AND KASICH ALSO SPOKE OUT THIS
00:04:11WEEK ON HIS SIGNING OF THE BILL
PUTTING A TEMPORARY STOP TO THE
00:04:13GREEN ENERGY MANDATES ON OHIO'S
ELECTRIC UTILITIES. KASICH SAID
00:04:18IN A GAGGLE WITH REPORTERS THAT
HE FEELS THE TWO YEAR STOP IN
00:04:21THE PROGRESS OF THE ENERGY
STANDARDS, WHICH HE CALLS A
00:04:27PAUSE AND NOT A FREEZE, WAS THE
RIGHT SOLUTION TO CONCERNS ABOUT
00:04:29THE UTILITIES' CLAIMS THAT THE
ALTERNATIVE ENERGY STANDARDS
00:04:31WERE COSTING THEM TOO MUCH
MONEY.
00:04:36>> I THINK IT'S A VICTORY FOR
OHIO'S ECONOMY, IT'S A VICTORY
00:04:38FOR THOSE THAT CARE ABOUT
RENEWABLES, AND FRANKLY I FIND
00:04:41THAT MOST PEOPLE ARE UNHAPPY
WITH IT - WHICH MEANS I GOT IT
00:04:46IN EXACTLY THE RIGHT PLACE.
>> AND KASICH SAID HE DIDN'T
00:04:49THINK REQUIRING UTILITIES TO GET
25% OF THEIR POWER FROM
00:04:51ALTERNATIVE ENERGY SOURCES BY
2025 WAS REALISTIC. THE BILL
00:04:56-- ENVIRONMENTAL ACTIVISTS,
GREEN ENERGY BUSINESSES,
00:05:03CONSUMER ORGANIZATIONS,
MANUFACTURERS, AND EVEN FAITH
00:05:04LEADERS HAD ASKED KASICH TO VETO
THE BILL. SUPPORTERS OF IT SAY
00:05:05THE TWO-YEAR PAUSE WILL ALLOW
FOR A COST-BENEFIT ANALYSIS OF
00:05:12THE GREEN ENERGY STANDARDS, AND
WILL ALLOW THEM TO RESTART IN 27
00:05:16IF LAWMAKERS TAKE NO FURTHER
ACTION.
00:05:20OPPONENTS FEAR THIS IS THE FIRST
STEP TOWARDS ELIMINATING THOSE
00:05:22STANDARDS ENTIRELY.
ADVOCATES HAVE LONG BICKERED
00:05:24OVER LAST YEAR'S BUDGET, WHICH
ALONG WITH BUSINESS AND PERSONAL
00:05:26INCOME TAX CUTS INCLUDED WHAT
MOST PEOPLE HAVE CHARACTERIZED
00:05:30AS A TAX INCREASE.
THE ELIMINATION OF A 12.5%
00:05:32PROPERTY TAX ROLLBACK FOR
HOMEOWNERS, WHICH MEANS THE
00:05:34STATE WOULD NO LONGER PAY THAT
SHARE OF NEW OPERATING LEVIES
00:05:39FOR SCHOOL DISTRICTS. THE
LIBERAL LEANING THINK-TANK
00:05:42INNOVATION OHIO ESTIMATES THE
ELIMINATION OF THAT ROLLBACK
00:05:45COSTS TAXPAYERS $10 MILLION, AND
THAT'S HAVING AN EFFECT ON LOCAL
00:05:50SCHOOL LEVIES. THE GROUP SAYS
$670 MILLION IN NEW OPERATING
00:05:54LEVIES HAVE BEEN PASSED BETWEEN
MAY 2011 AND THIS MAY, WHICH IS
00:05:59A 34% INCREASE OVER THE THREE
YEARS FROM MAY 2007 TO MAY 2010.
00:06:03BUT KASICH AND STATE LAWMAKERS
HAVE SAID THAT TAX CUTS ARE
00:06:08IMPROVING OHIO'S ECONOMY, AND
THE PROOF IS IN THE DROP IN THE
00:06:11STATE'S UNEMPLOYMENT RATE, WHICH
IS DOWN MORE THAN A FULL POINT
00:06:15SINCE JANUARY AND AT 5.7 PERCENT
NOW, IT'S WELL BELOW THE 9.4
00:06:18PERCENT IT WAS WHEN KASICH TOOK
OFFICE IN JANUARY 2011. AND
00:06:23CONSERVATIVES CONTINUE TO ARGUE
FOR MORE TAX CUTS TO CONTINUE
00:06:25THIS TREND.
I'M PLEASED TO BE JOINED BY TWO
00:06:29EXPERTS IN THE AREA OF TAXES AND
STATE SPENDING, FROM TWO
00:06:32DIFFERENT PERSPECTIVES. DALE
BUTLAND IS WITH INNOVATION OHIO,
00:06:36WHICH HAS PRODUCED SEVERAL
REPORTS ON WHAT THEY DESCRIBE AS
00:06:39THE NEGATIVE EFFECT OF GOV.
KASICH'S TAX POLICIES. AND GREG
00:06:42LAWSON IS WITH THE BUCKEYE
INSTITUTE, WHICH CALLS ITSELF A
00:06:44FREE MARKET THINK TANK.
DAN, LET ME START WITH YOU.
00:06:50YOU ARE SAYING HOMEOWNERS ARE
PAYING A LOT MORE.
00:06:53THEY ARE PAYING THIS ROLLBACK
AND MORE IN THESE PROPERTY TAXES
00:06:56WHEN THEY ARE APPROVED.
ESSENTIALLY, YOU ARE SAYING TAX
00:07:00CUTS AT THE STATE LEVEL ARE
TRANSLATING TO HIGHER TAXES
00:07:02LOCALLY.
>> YES.
00:07:03THE REASON THAT PEOPLE ARE
PAYING HIGHER LOCAL PROPERTY
00:07:09TAXES IS NOT BECAUSE OF THE
PROPERTY TAX ROLLBACK.
00:07:11IT IS BECAUSE OF THE BUDGET CUTS
THAT HAVE BEEN ENACTED TO
00:07:15SCHOOLS AND LOCAL GOVERNMENTS.
HOW MUCH ARE WE TALKING ABOUT?
00:07:19SCHOOLS HAVE $500 MILLION LESS
THAN THEY DID WHEN KASICH WALKED
00:07:26IN THE DOOR.
LOCAL GOVERNMENTS, IT IS WELL
00:07:28OVER $8 BILLION THERE.
AS A RESULT OF THOSE BUDGET
00:07:32CUTS, SCHOOLS AND LOCAL
GOVERNMENTS HAVE TO PUT LOCAL
00:07:36PROPERTY TAX LEVIES ON THE
BALLOT.
00:07:37ONCE THEY PASS THOSE, ABOUT $670
MILLION, THAT IS THE 34%
00:07:43INCREASE BEFORE KASICH BECAME
GOVERNOR.
00:07:50THAT IS COSTING THOSE TAXPAYERS
$11 MILLION MORE THAN THEY
00:07:55OTHERWISE WOULD HAVE BECAUSE OF
THE PROPERTY TAX ROLLBACK.
00:07:57>> IT'S A DOUBLE HIT.
>> CORRECT.
00:07:59>> GREG, YOU AGREE IN PART WITH
DALE THAT LOCAL TAXES ARE HIGH.
00:08:05YOU SAID OHIO'S LOCAL TAX BURDEN
AS A PERCENTAGE OF LOCAL INCOME
00:08:10RANKED SIXTH IN THE NATION.
YOU SAY IT IS TOO MUCH STATE
00:08:11SPENDING.
>> WHAT HAS HAPPENED HERE AT THE
00:08:15LOCAL LEVEL -- ESPECIALLY THE
SCHOOLS -- IS NOT THAT DIFFERENT
00:08:22FROM WHAT YOU HAVE SEEN IN PAST
HISTORICAL TRENDS.
00:08:23IF YOU LOOK AT THE NUMBER OF
LEVIES ON THE BALLOT, THE ACTUAL
00:08:26TIME PERIOD THE REPORT FROM
INNOVATION HAS IS FROM THE YEARS
00:08:33OF THE STRICKLAND
ADMINISTRATION.
00:08:34THERE WERE FAR MORE LEVIES THAN
WHAT WAS UNDER THE STRICKLAND
00:08:41ADMINISTRATION OR WHAT WE HAVE
SEEN THUS FAR UNDER THE KASICH
00:08:42ADMINISTRATION.
THAT $500 MILLION, THERE HAS
00:08:48BEEN A NUMBER OF DIFFERENT
THINGS THAT HAPPENED WITH THE
00:08:50CUTS.
THE BIGGEST THING WE NEED TO
00:08:53TALK ABOUT IS THE FACT THERE'S A
LOT OF FEDERAL MONEY THAT WAS
00:08:56BACKFILLING A LOT OF THESE
SCHOOLS DURING THE STRICKLAND
00:08:57YEARS.
>> THE STIMULUS MONEY.
00:09:00>> EXACTLY.
STATE DOLLARS GOING TO PRIMARY
00:09:08TICKET EDUCATION HAVE INCREASED
EVERY YEAR UNDER GOVERNOR KASICH
00:09:09.
WE ARE GOING TO BE SPENDING 500
00:09:14MILLION DOLLARS THAN WE ARE
SPENDING IN THE CURRENT FISCAL
00:09:15YEAR.
WE ARE GOING TO BE SPENDING $1
00:09:18BILLION MORE IN STATE REVENUE ON
SCHOOLS THAN WE WERE WHEN -- IN
00:09:23THE LAST FISCAL YEAR.
KASICH DID NOT BACKFILL THE
00:09:28ENTIRE LOSS OF STIMULUS DOLLARS.
THAT WAS ONE TIME MONEY AS WELL.
00:09:30WHAT A LOT OF ORGANIZATIONS AND
ADVOCATES ARE TALKING ABOUT HERE
00:09:38IS, THEY WANT TO SEE A TAX
INCREASE AT THE STATE LEVEL.
00:09:40THAT IS NOT SOMETHING THAT WE
THINK WOULD MAKE FOR SMART
00:09:46POLICIES FOR A STATE THAT LOST
600,000 JOBS BETWEEN 2000 AND
00:09:512010.
>> LET ME START BY DISAGREEING
00:09:57WITH WHAT GREG SAID AT THE TOP
OF HIS REMARKS, WHICH IS THAT
00:10:00OHIO IS A HIGH-TECH STATE.
IF YOU LOOK AT THE FED'S TAX
00:10:04DATA, OHIO STATE AND LOCAL TAXES
AS A SHARE OF PERSONAL INCOME IS
00:10:12SLIGHTLY LOWER THAN THOSE OF OUR
NEIGHBORING STATES.
00:10:13IT IS LOWER THAN THE NATIONAL
AVERAGE.
00:10:15THERE'S NOT THAT MUCH DIFFERENCE
AMONG STATES WHEN IT COMES TO
00:10:25THE STATE AND LOCAL TAX BURDEN,
AND CERTAINLY NOT ENOUGH TO MAKE
00:10:30UP FOR THE COMPETITIVE IMBALANCE
THAT KASICH IS ALWAYS TALKING
00:10:33ABOUT.
IT IS TRUE THAT THERE WAS THAT
00:10:35MONEY.
IT WAS SENT INTO ALL THE STATES
00:10:41PRECISELY TO BE USED FOR
SPENDING FOR SCHOOLS AND LOCAL
00:10:43GOVERNMENTS SO THAT IN THE WAKE
OF THAT RECESSION, THE WORST
00:10:48RECESSION SINCE THE GREAT
DEPRESSION, WE DID NOT HAVE HUGE
00:10:50LAYOFFS IN THE PUBLIC SECTOR --
TEACHERS AND LOCAL GOVERNMENT
00:10:55WORKERS -- WHICH WOULD HAVE MADE
THE RECESSION EVEN WORSE.
00:10:56THAT WAS THE PURPOSE OF THE
STIMULUS MONEY.
00:10:58KASICH ACTS AS THOUGH, TED
SHOULD HAVE NEVER SPENT IT.
00:11:04THAT'S WHAT IT WAS PUT THERE
FOR.
00:11:05AFTER THE MONEY IS GONE, NOW
WHAT?
00:11:07KASICH SAYS, I HAD NO CHOICE.
I HAD TO MAKE THESE CUTS BECAUSE
00:11:15WE ARE LOOKING AT A PROSPECTIVE
BUDGET DEFICIT.
00:11:16EVERYBODY UNDERSTANDS, INCLUDING
INNOVATION OHIO.
00:11:21MOST PEOPLE UNDERSTAND IF YOU
HAVE TOUGH ECONOMIC TIMES, MAYBE
00:11:27CALLS FOR SHARED SACRIFICE.
THE PROBLEM I AND MY
00:11:29ORGANIZATION HAS IS EVERYONE HAS
BEEN ASKED TO SACRIFICE EXCEPT
00:11:33THE WEALTHIEST PEOPLE IN THIS
STATE.
00:11:35THE ONLY THING THEY HAVE BEEN
ASKED TO SACRIFICE IS TO TAKE A
00:11:37FEW MORE TAX CUTS THAT BENEFIT
THEM.
00:11:38THAT IS THE REAL PROBLEM THERE.
>> GO AHEAD, GREG.
00:11:43>> WE HAVE TO PULL THE LENS BACK
AND UNDERSTAND WHAT OHIO HAS
00:11:50BEEN FACING.
THIS IS NOT SOMETHING THAT GOES
00:11:52BACK TO GOVERNOR STRICKLAND.
WE HAVE A MULTI-DECADE PROBLEM
00:11:55IN THE STATE OF OHIO.
WE HAVE BEEN A SUBPAR ECONOMIC
00:11:58ACTOR FOR 50 PLUS YEARS.
THIS IS GOING ON.
00:12:04WE HAVE TO DO SOMETHING MASSIVE
AND TRANSFORMATIONAL IF WE ARE
00:12:07GOING TO GET OHIO BACK TO WHERE
WE LIKE TO THINK OF THINGS WHEN
00:12:10YOU THINK OF THE 1950'S -- IN
THE 1960'S, WE HAD 24
00:12:15CONGRESSMAN.
WE HAVE 16 NOW.
00:12:17YOU HAVE LOST ONE THIRD OF OUR
CONGRESSIONAL DELEGATION BECAUSE
00:12:22OHIO IS NOT KEEPING PACE WITH
STATES TO THE SOUTH AND WEST.
00:12:24THERE IS A LOT MORE THAT WE
WOULD SUGGEST THAT THE GOVERNOR
00:12:32DOES RELATED TO TAX CUTS AND
LABOR REFORM POLICIES --
00:12:33>> SUCH AS?
>> WE AGREE WITH HIM ON GETTING
00:12:38RID OF THE INCOME TAX.
WE THINK WE SHOULD BE EVEN
00:12:42BOLDER ABOUT HOW DRAMATIC WE ARE
WITH THE INCOME TAX AND START
00:12:43LOOKING AT WHAT WE DO TO
PARTIALLY BACKFILL THAT.
00:12:47THERE'S A LOT OF LABOR REFORM
THAT NEEDS TO HAPPEN IN THIS
00:12:53STATE.
THERE IS A MUNICIPAL INCOME TAX.
00:12:59I HAVE WRITTEN AN OP-ED IN "THE
COLUMBUS DISPATCH."
00:13:02EVERYONE AGREES WE HAVE THE MOST
BYZANTINE, COMPLICATED TAX
00:13:07SYSTEM FOR LOCAL GOVERNMENTS OR
CITIES IN THE COUNTRY.
00:13:11ONLY 10 OF THEM LEVY MUNICIPAL
INCOME TAXES.
00:13:16WE HAVE TO DEAL WITH THAT TOO,
AND HAVE NOT MANAGED TO DO THAT.
00:13:20>> BEFORE WE GET TO OFF TRACK, I
WANT TO GET TO THE REPORT THAT
00:13:27INNOVATION OHIO PUT TOGETHER.
THE OHIO SCHOOL BOARD
00:13:32ASSOCIATION AGREES WITH GREG IN
THAT 2003, THE NUMBER OF LEVIES
00:13:35HAS DECREASED.
VOTERS SEEM TO BE APPROVING MORE
00:13:39LEVIES.
IN MAY, THEY APPROVED 69% OF
00:13:42LEVIES.
I'M WONDERING, DOESN'T THAT MAKE
00:13:49YOU THINK THAT PEOPLE FEEL THEY
CAN AFFORD THESE LEVIES, THAT
00:13:51THESE LEVIES ARE OK WITH THEM?
>> THE FIRST POINT TO BE MADE IS
00:13:56THAT ANOTHER FINDING OF OUR
STUDY WHICH THE VIEWERS CAN READ
00:13:58FOR THEMSELVES AT INNOVATIONOHIO
.ORG, IS THERE HAS BEEN AN
00:14:04INCREASE IN THE NUMBER OF TOTAL
LEVIES CONSIDERED AND PASSED
00:14:11WHEN COMPARED WITH THE PREVIOUS
THREE YEARS BEFORE KASICH BECAME
00:14:13THE GOVERNOR.
GREG PUT HIS FINGER ON SOMETHING
00:14:21, A FUNDAMENTAL DISAGREEMENT
THAT I THINK YOUR VIEWERS HAVE
00:14:26TO SORT OUT FOR THEMSELVES.
GREG SAID WHAT HE WOULD LIKE TO
00:14:28SEE HAPPEN IS THE ELIMINATION OF
THE INCOME TAX.
00:14:33UNDERSTAND WHAT THAT MEANS.
YOU WILL SHIFT THE TAX BURDEN
00:14:38AWAY FROM WEALTHIER FOLKS AND
ONTO THE BACK OF MIDDLE INCOME
00:14:41AND LOW INCOME PEOPLE.
WHY IS THAT?
00:14:42THE INCOME TAX IS THE ONLY TAX
WE HAVE IN THIS STATE BASED ON
00:14:48THE ABILITY TO PAY.
THE MORE YOU MAKE, THE MORE YOU
00:14:52PAY.
A CONSUMPTION TAX OR SALES TAX
00:14:55IS A REGRESSIVE TAX.
WHY?
00:14:56MIDDLE AND LOW INCOME PEOPLE PAY
A SMALLER PERCENTAGE OF THEIR
00:15:03DISCRETIONARY INCOME FOR
EVERYDAY ITEMS THEN DO WEALTHIER
00:15:06PEOPLE.
WHEN GREG SAYS HE WANTS TO GET
00:15:08RID OF THE INCOME TAX, BASED ON
THE ABILITY TO PAY, YOU WILL
00:15:12SHIFT THE TAX BURDEN TO MIDDLE
AND LOW INCOME PEOPLE.
00:15:14GOVERNOR KASICH HAS BEEN DOING
THAT ANYWAY WITH HIS TAX CUTS
00:15:20THAT FAVOR THE WEALTHY.
IN THE TWO INCOME TAX CUTS THAT
00:15:25HAVE BEEN PASSED SINCE KASICH
BECAME GOVERNOR, THE FIRST ONE
00:15:29GAVE HIGH INCOME PEOPLE -- I
MEAN THE TOP ONE PERCENT,
00:15:31EARNING $335,000 A YEAR, GAVE
THEM $10,000 IN A TAX CUT.
00:15:38MIDDLE INCOME PEOPLE UP TO
$44,000 -- $54,000 GOT $20.
00:15:50REGULAR PEOPLE GOT $13.
PUT THEM ALTOGETHER, THE TWO
00:15:58INCOME TAX CUTS, THE RICHEST
OHIOANS GET A TAX CUT OF $13,000
00:16:01A YEAR AND MIDDLE INCOME FOLKS
GET $20.
00:16:06>> I KNOW GREG AGREES WITH YOU
ON THE SALES TAX.
00:16:10>> WE THINK THAT TEXAS IS DOING
PRETTY WELL WITH PRIVATE SECTOR
00:16:18JOB CREATION, AND SO IS FLORIDA.
I'M NOT SAYING IF WE GET RID OF
00:16:25THE INCOME TAX WE'RE GOING TO
BECOME LIKE TEXAS.
00:16:27BUT IF ONE PIECE OF A MULTI STEP
PROCESS WE HAVE TO DO -- CLEARLY
00:16:31IT HAS NOT BEEN WORKING FOR
DECADES.
00:16:34617,000 PRIVATE SECTOR JOBS
BETWEEN 2000 AND 2010 WERE LOST
00:16:40IN THE STATE.
WE HAVE SEEN THE JOB NUMBERS GO
00:16:42UP.
A STATUS QUO IN THIS STATE IS A
00:16:47STATUS QUO OF ABYSMAL FAILURE.
IF WE GO BACKWARDS AND SAY WE
00:16:51WILL SPEND MORE MONEY -- THE
THING I FIND A LITTLE TROUBLING
00:16:54IS -- INNOVATION OHIO AND SOME
OTHER ORGANIZATIONS AND
00:17:01ADVOCATES WOULD BE HONEST.
I DO NOT THINK THERE IS A TAX
00:17:03INCREASE THEY WOULD NOT ENDORSE.
I DON'T THINK THERE IS A
00:17:10SPENDING INCREASE THEY WOULD NOT
AND DOORS TO STIMULATE --
00:17:12ENDORSE TO STIMULATE THE
ECONOMY.
00:17:15>> INNOVATION OHIO WOULD OPPOSE
ANY TAX INCREASE ON MIDDLE AND
00:17:21LOW INCOME PEOPLE.
HOW ABOUT WE TAX THE RICH FOLKS
00:17:24WHO HAVE BEEN HAVING THE PARTY
OVER THE LAST NUMBER OF YEARS?
00:17:26BY THE WAY, THIS MAY BE IS A
DISAGREEMENT OVER WHERE JOBS
00:17:35COME FROM.
WHAT CREATES JOBS.
00:17:36GREG MIGHT TELL YOU THEY COME
FROM TAX CUTS.
00:17:39YOU GIVE TAX CUTS TO THE JOB
CREATORS AND THEY WILL CREATE
00:17:44JOBS.
THAT'S NOT WHERE THEY COME FROM.
00:17:47WE HAVE PLENTY OF HISTORICAL
EVIDENCE TO INDICATE WHEN YOU
00:17:50CUT TAXES FOR RICH PEOPLE, IT
DOES NOT LEAD TO JOB CREATION.
00:17:52WE SAW IT IN THE BUSH
ADMINISTRATION.
00:17:56WE SAW IT IN OHIO IN 2005 WHEN
THEY CUT TAXES ACROSS THE BOARD
00:18:01OVER FIVE YEARS.
WHERE JOBS COME FROM IS CONSUMER
00:18:05DEMAND.
I RUN A SMALL BUSINESS AND HAVE
00:18:06OWNED ONE FOR 15 YEARS.
NO BUSINESS WILL HIRE A SINGLE
00:18:10WORKER UNLESS HE OR SHE BELIEVES
THAT HIS CUSTOMERS WILL BUY
00:18:17ENOUGH OF YOUR GOODS OR SERVICES
TO JUSTIFY THE COST OF THAT
00:18:19INITIAL HIGHER.
IF YOU WANT TO CREATE JOBS, PUT
00:18:23MORE MONEY IN THE POCKETS OF
CONSUMERS, PARTICULARLY MIDDLE
00:18:26AND LOW INCOME PEOPLE.
>> IF THEY HAVE A JOB, THEY WILL
00:18:29HAVE MONEY TO SPEND IT.
>> I WANT TO GET BACK TO SCHOOL
00:18:37LEVIES.
GO AHEAD AND RESPOND TO WHAT DAN
00:18:40SAID.
>> THE BOTTOM LINE IS, WE HAVE
00:18:44NOT SEEN GOOD JOB CREATION
NUMBERS FOR A LONG TIME IN THE
00:18:46STATE.
TAX REFORM IS A CRITICAL THING.
00:18:50FRANKLY, WE HAVE AN AWFUL LOT OF
OVERDOING THINGS ON LICENSES.
00:18:56THERE IS A WHOLE HOST OF
DIFFERENT THINGS WE SHOULD BE
00:19:01DOING TO MAKE BARRIERS OF ENTRY
EASIER.
00:19:02LOOK AT NEW COMPANIES COMING
INTO THE MARKET.
00:19:06HOW OFTEN DOES OHIO BLOCK
COMPANIES FROM COMING INTO THE
00:19:10MARKET BECAUSE THEY HAVE A
LICENSURE THAT FAVORS INCUMBENT
00:19:12BUSINESS?
THAT IS SOMETHING THAT HAS BEEN
00:19:15A BIPARTISAN PROBLEM FOR THE
STATE WE NEED TO ADDRESS.
00:19:17>> THE REASON WE HAVE NOT HAD
GOOD JOB CREATION IN THE STATE
00:19:21IS THE SAME REASON WE HAVE NOT
HAD A NATIONALLY.
00:19:23REGULAR PEOPLE, MIDDLE AND LOW
INCOME PEOPLE HAVE NOT HAD
00:19:27ENOUGH MONEY IN THEIR POCKET TO
BUY THE TELEVISIONS AND THE CARS
00:19:33AND ALL THE OTHER THINGS WE NEED
TO KEEP OUR ECONOMY MOVING.
00:19:36YOU NEED TO PUT MORE MONEY IN
THEIR POCKETS.
00:19:38WHEN WAGES ARE FLAT OR FALLING
AS THEY HAVE BEEN IN THIS
00:19:41COUNTRY FOR 35 YEARS IN THE TAX
CUT THING COMES IN BEHIND THAT
00:19:47AND JUST CUT TAXES PRIMARILY FOR
THE WEALTHY PEOPLE AND LEAVES
00:19:51OUT MIDDLE AND LOW INCOME
PEOPLE, IT'S A DOUBLE PRONGED
00:19:54PROBLEM.
70% OF OUR ECONOMY IS BASED ON
00:20:01CONSUMER SPENDING.
AND YET, THE OVERWHELMING
00:20:07MAJORITY OF NEW JOBS HAVE BEEN
CREATED SINCE THIS RECOVERY HAVE
00:20:10BEEN LOW-WAGE JOBS.
>> I WANT TO GET BACK TO
00:20:13EDUCATION SPENDING.
GREG, IN YOUR DATA THERE ON THE
00:20:17NUMBER OF TOTAL LEVIES HAVE
DECREASED -- THERE IS ALSO THE
00:20:22ISSUE AT WHICH THE RATE OF
ADDITIONAL LEVIES TO RAISE NEW
00:20:24TAXES HAS DOUBLED.
PEOPLE ARE FAR LESS LIKELY TO
00:20:29SUPPORT NEW TAX LEVIES THAN THEY
ARE TO SUPPORT RENEWALS.
00:20:31DOESN'T THIS SPEAK TO THE WHOLE
IDEA OF GETTING PAST RIGHT DOWN
00:20:37TO THE LOCAL LEVEL AND SCORES --
SCHOOLS AND EDUCATION SUFFERING?
00:20:42>> A GOOD CHUNK OF THAT MONEY
CAME FROM THE CLEVELAND PLAN.
00:20:47CLEVELAND HAD A MASSIVE -- THAT
WAS A MULTIMILLIONS, SOMETHING
00:20:54LIKE 30% OR 40% -- THE
DIFFERENCE BETWEEN THE MONEY
00:20:59THAT WAS RAISED IN THE
STRICKLAND VERSUS KASICH YEARS,
00:21:03ALMOST HALF THE DIFFERENCE WAS
RELATED TO THE CLEVELAND LAND.
00:21:04THE CLEVELAND PLANT DID NOT HAVE
ANYTHING TO DO WITH THE QUOTE
00:21:07UNQUOTE CUTS WE ARE TALKING
ABOUT.
00:21:11WE ALL KNOW THAT WAS A
COMPLETELY GENEROUS PROBLEM.
00:21:19WE NEED TO LOOK AT THE CONTEXT
OF HOW MUCH MONEY THAT WAS.
00:21:20THE OTHER THING IS THAT I WOULD
DISAGREE THIS IS SIMPLY AN INPUT
00:21:28ISSUE.
WE HAVE TO BE TALKING ABOUT
00:21:29OUTPUT TRADE -- OUTPUT.
FOR ALL THE YEARS WE HAVE SEEN
00:21:32INCREASED FUNDING IN SCHOOLS --
WE DID SPEND MORE MONEY.
00:21:37WE SPEND VASTLY MORE THAN
INFLATION IN THE LIGHT -- LATE
00:21:421990'S.
WE STILL HAVE FLATLINING IN
00:21:47ACADEMIC OUTCOMES.
IF MONEY IS THE THING, PER-PUPIL
00:21:51SPENDING IS THE BE-ALL AND
END-ALL, WE SHOULD BE SEEING
00:21:54IMPROVEMENTS IN TEST SCORES.
I DO SOME EXTENT REJECT THE
00:21:59PREMISE THAT MONEY IN AND OF
ITSELF IS THE ANSWER TO ACADEMIC
00:22:03OUTCOMES.
>> WHEN WE RELY HEAVILY ON
00:22:06PROPERTY TAXES, DON'T WE GO
ALONG WITH THIS PROBLEM WHERE IT
00:22:11IS AN UNEQUAL WAY TO EDUCATE
KIDS?
00:22:12>> THE QUESTION BECOMES, CAN WE
GET OUTCOMES BY LOOKING AT HOW
00:22:17WE DO THINGS WITHIN THE
CLASSROOM, AND IT'S NOT A
00:22:20FUNCTION OF MONEY.
THE QUESTION REALLY IS, WHAT IS
00:22:26THE COMBINED TOTAL WE HAVE AN IS
THAT NECESSARY TO GET WHERE WE
00:22:29NEED TO GO, AND WHAT ARE OTHER
ISSUES THAT IMPACT STUDENT
00:22:32ACHIEVEMENT OUTSIDE OF THE
MONEY?
00:22:32IF THE IDEA IS THAT WE HAVE TO
RAISE TAXES AT THE STATE LEVEL
00:22:39IN ORDER TO HAVE THAT MONEY
SUBSIDIZE -- THE STATE DOES
00:22:41SUBSIDIZE THE LOWER INCOME, THE
STATE DOES THAT.
00:22:47IT HAS A GUARANTEED AMOUNT IT
HAS TO GIVE, AND IT ALWAYS TAKES
00:22:52CARE OF THAT.
IF YOU'RE GOING TO ASSUME WE
00:22:55HAVE TO RAISE TAXES THERE, YOU
ARE ASSUMING THAT MONEY IS GOING
00:22:59TO HAVE A BETTER OUTCOME ONE,
AND TWO, AND THAT IT ESSENTIALLY
00:23:05HAS TO BE PLUGGED IN FROM THE
STATE BECAUSE THE LOCALS CANNOT
00:23:07DO IT.
YOU ARE TAKING AWAY LOCAL
00:23:10CONTROL AND THE LOCALS CANNOT
CONTROL THE MONEY EITHER.
00:23:12I DON'T REALLY THINK THAT WAY.
>> YOUR QUESTION DESERVES AN
00:23:16ANSWER.
THE WAY WE FUND SCHOOLS IN OHIO,
00:23:19PRIMARILY THROUGH THE PROPERTY
TAX AND OVERRELIANCE ON THE
00:23:22PROPERTY TAX, IS
UNCONSTITUTIONAL AND UNFAIR.
00:23:26THE OHIO SUPREME COURT RULED
FOUR SEPARATE TIMES IT WAS
00:23:31UNCONSTITUTIONAL.
YET WE STILL HAVE THE OVER
00:23:33RELIANCE ON THE PROPERTY TAX.
THE JURISDICTION BECAUSE THEY
00:23:38ONLY CHOICE AT THAT POINT TO
ENFORCE THE ORDER WAS TO JAIL
00:23:40LAWMAKERS, WHICH THEY WERE NOT
TO -- NOT PREPARED TO DO.
00:23:43WE STILL HAVE THIS PROBLEM HERE.
THE POINT I WANT TO CONTINUE TO
00:23:51MAKE -- I THINK IT'S VERY
IMPORTANT -- GOVERNOR KASICH AND
00:23:55HIS ALLIES IN LEGISLATURE PARADE
AROUND AS BUDGET AND TAX
00:23:59CUTTERS.
AS YOU SAID A MOMENT AGO, ALL
00:24:02THEY HAVE DONE IS PUT THE BURDEN
OF TAXATION AND SHIFTED IT FROM
00:24:08THE STATE TO THE LOCAL LEVEL.
>> I DID NOT SAY THAT.
00:24:11I ASKED YOU ABOUT IT.
>> GOVERNOR KASICH IS A TAX
00:24:16SHIFTER.
THAT IS ALL HE HAS DONE.
00:24:18HE SHIFTS IN A VARIETY OF WAYS,
FROM THE RICH TO THE POOR.
00:24:21HIS TAX PLAN, THERE IS NOT A
DIMES'S WORTH OF DIFFERENCE
00:24:26BETWEEN THE TAX PLAN THAT KASICH
WANTS TO BRING TO OHIO AND THE
00:24:30ONE THAT MITT ROMNEY WANTED TO
BRING TO AMERICA.
00:24:31WE SAID THAT JOHN KASICH IS MITT
ROMNEY WITH A BAD HAIRCUT.
00:24:35[LAUGHTER]
>> I WANT TO GIVE GREG ONE MORE
00:24:40RESPONSE, THEN WE HAVE TO BREAK
IT UP.
00:24:41>> WE NEED TO HAVE JOB CREATION
AND WE NEED TO HAVE A TAX SYSTEM
00:24:47THAT MAKES SENSE AND DOES NOT
DISINCENTIVIZE PEOPLE FROM BEING
00:24:52ABLE TO CREATE JOBS.
WE DEFINITELY THINK THE STATE
00:24:56INCOME TAX CUTS IS A STEP IN THE
RIGHT DIRECTION.
00:24:57LOCAL VOTERS CAN MAKE DECISIONS,
AND THEY ARE VERY PRIMED AND
00:25:04READY TO DO THAT AT THE LOCAL
LEVEL.
00:25:05THEY ARE GOING TO HAVE TRUTH IN
ACCOUNTING BECAUSE THE ROLLBACK
00:25:09-- ILLUMINATION OF ROLLBACK THAT
MEANS THEY KNOW HOW MUCH THEY'RE
00:25:11GOING TO PAY AT THE LOCAL LEVEL.
LET'S GIVE THE LOCAL TAXPAYERS A
00:25:17CHANCE IF THEY DECIDE MORE MONEY
WILL GET BETTER ACADEMIC
00:25:20OUTCOMES AND THEY FEEL STRONGLY
ABOUT IT, THEY CAN VOTE FOR IT
00:25:23AND WE CAN CONTINUE TO TRY TO
MAKE THE STATE A BETTER OVERALL
00:25:25ECONOMY.
EVENTUALLY, IF YOU DO THIS, YOU
00:25:29WILL SEE A RISING TIDE CAN LIFT
ALL VOTES.
00:25:33REVENUES ARE UP IN MOST CITIES.
SALES TAX REVENUES ARE UP IN
00:25:40TERMS OF WHAT IS GOING INTO THE
GENERAL FUND FOR THESE ENTITIES.
00:25:42WE ARE STARTING TO SEE RECOVERY.
IT'S HAPPENING.
00:25:46>> THANK YOU VERY MUCH FOR BEING
HERE.
00:25:50AND THAT'S IT FOR THIS WEEK.
FOR MY COLLEAGUES AT OHIO PUBLIC
00:25:53RADIO AND TELEVISION, THANKS FOR
WATCHING. IF YOU'D LIKE TO ASK
00:25:55QUESTIONS, MAKE COMMENTS, OR
WATCH THIS WEEK'S SHOW OR
00:25:57EARLIER EPISODES, PLEASE VISIT
OUR WEBSITE AT STATENEWS.ORG, OR
00:26:01WATCH ON THE OHIO CHANNEL'S
WEBSITE OR AT
00:26:03IDEASTREAM.ORG/OHIO.
AND YOU CAN FOLLOW JO INGLES,
00:26:08ANDY CHOW AND ME ON TWITTER.
AND PLEASE JOIN US AGAIN NEXT
00:26:10TIME FOR "THE STATE OF OHIO".
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