00:00:38 | >> THE GOVERNOR RELEASES HIS SECOND TWO-YEAR BUDGET - WHICH |
00:00:40 | WILL CARRY HIM THROUGH HIS RE- ELECTION CAMPAIGN - AND IT |
00:00:44 | INCLUDES PREDICTED TAX CUTS AND SOME UNEXPECTED TAX INCREASES. |
00:00:46 | WE HAVE DETAILS ABOUT THE BIGGEST ITEMS IN THE BUDGET - |
00:00:51 | AND THE MOST CONTROVERSIAL ONES. AND TWO BUDGET EXPERTS CRUNCH |
00:00:55 | THE NUMBERS AND CHEW THROUGH THE POLITICS BEHIND THE SPENDING |
00:00:57 | PLAN. ALL THIS WEEK IN "THE STATE OF |
00:00:59 | OHIO". GOV. JOHN KASICH'S SECOND |
00:01:04 | BUDGET - WHICH HE LABELED OHIO'S JOBS BUDGET 2.0 - CONTAINED |
00:01:07 | SOME EXPECTED ANNOUNCEMENTS, BUT A LOT OF SURPRISES. |
00:01:09 | TWO OF THE BIGGEST ITEMS IN THE 63.2 BILLION DOLLAR TWO YEAR |
00:01:16 | SPENDING PLAN WERE NO SHOCKERS. THE GOVERNOR DID INDEED INCLUDE |
00:01:19 | A SEVERANCE TAX INCREASE ON OIL AND NATURAL GAS DRILLERS IN HIS |
00:01:22 | BUDGET AND HE ALSO CUT THE STATE INCOME TAX, WHICH HE'S |
00:01:24 | TALKED ABOUT SINCE HE ANNOUNCED HE WAS RUNNING FOR GOVERNOR. |
00:01:27 | HE'S PROPOSING A 20 PERCENT ACROSS THE BOARD INCOME TAX CUT |
00:01:32 | TO ALL OHIO TAXPAYERS OVER THREE YEARS AND A 50 PERCENT |
00:01:33 | INCOME TAX CUT FOR SMALL BUSINESSES OVER THREE YEARS. |
00:01:37 | >> ABOUT 50% OF THE JOBS IN THIS STATE ARE CREATED BY SMALL |
00:01:42 | BUSINESS AND WE WANT TO DO EVERYTHING WE |
00:01:51 | CAN TO ENCOURAGE JOB GROWTH IN SMALL BUSINESSES AND HELP THESE |
00:01:54 | FOLKS WHO ARE BELEAGUERED BECAUSE OF BIG GOVERNMENT |
00:01:57 | REGULATIONS AND OVER TAXATION. OUR INCOME TAXES ARE TOO HIGH, |
00:02:02 | AND THEY ARE TOO HIGH, PARTICULARLY AS THEY AFFECT |
00:02:05 | SMALL BUSINESSES ABILITY TO PAY. >> BUT HOW HE'S GETTING TO THAT |
00:02:09 | INCOME TAX CUT - WHICH WILL EVENTUALLY MAKE OHIOANS INCOME |
00:02:12 | TAX 4.75 PERCENT - IS COMING AS SOMEWHAT OF AN EYE-OPENER. |
00:02:13 | HE WANTS TO INCREASE THE SEVERANCE TAX ON BIG OIL AND |
00:02:18 | NATURAL GAS DRILLERS THAT DO HORIZONTAL HYDRAULIC FRACTURING |
00:02:21 | OR FRACKING OPERATIONS, WHILE EXEMPTING THE SMALLER, LOWER- |
00:02:24 | VOLUME CONVENTIONAL DRILLERS. BUT HE ALSO HAS ANOTHER PLAN. |
00:02:26 | >> WE'RE GOING TO BROADEN THE TAX BASE AND BEGIN TO TAX |
00:02:35 | SERVICES WHICH IN THE PAST HAVE BEEN TAXED ONLY TO FILL BUT THE |
00:02:38 | POLLS. THIS IS NOT BEING USED TO FILL |
00:02:43 | BUT THE POLLS, THIS IS BEING USED TO BRING DOWN SIGNIFICANT |
00:02:45 | TAX RELIEF FOR OUR SMALL BUSINESSES. |
00:02:48 | WE WILL ALSO LOWER THE SALES TAX FROM 5.5% TO 5%, AND EXCLUSIONS |
00:02:55 | ON THE SERVICES ARE PRETTY CONSISTENT WITH EXCLUSIONS WE |
00:02:58 | SEE WHEN WE TAX THE NORMAL GOODS AND SERVICES. |
00:03:01 | SO IT WILL BE A $1.4 BILLION TAX CUT FOR OHIOANS. |
00:03:06 | >> IN HIS BUDGET, THE GOVERNOR IS PROPOSING A HUGE SERVICES IN |
00:03:11 | HIS BUDGET, GOV. KASICH IS PROPOSING A HUGE SHIFT |
00:03:12 | IN THE STATE'S TAX STRUCTURE, WITH THE STATE SALES TAX |
00:03:14 | BECOMING ITS LARGEST SOURCE OF REVENUE, NOT THE STATE INCOME |
00:03:17 | TAX. TAX COMMISSIONER JOE TESTA SAYS |
00:03:19 | BROADENING THE SALES TAX BASE BY 30% WILL MAKE THE STATE TAX |
00:03:23 | BURDEN MORE FAIR AND STABLE. >> WE'RE GOING TO RECOGNIZE |
00:03:26 | SOMETHING THAT'S BEEN GOING ON FOR A LONG PERIOD OF TIME, |
00:03:32 | WHICH IS THAT WE ARE SHIFTING FROM A GOODS BASED ECONOMY TO A |
00:03:36 | SERVICE-BASED ECONOMY. WHAT THIS PROPOSAL DOES IS IT |
00:03:41 | ALIGNS THE SEC -- TAX CODE WITH THE REALITIES OF THE ECONOMY. |
00:03:43 | ABOUT TWO-THIRDS OF ALL CONSUMPTION IS SERVICES. |
00:03:48 | BACK IN THE 1930'S WHEN SALES TAX WERE STARTED, IT WAS THE |
00:03:52 | OTHER WAY AROUND. OVER THE YEARS, THIS HAS |
00:03:55 | CHANGED, BUT THE TAX CODE HAD NOT BEEN ADDRESSED IN THIS AREA |
00:03:59 | COMPREHENSIVELY TO ADDRESS THAT CHANGE. |
00:04:01 | WE THINK THAT TIME HAS CLEARLY TIME FOR THAT TO TAKE PLACE. |
00:04:03 | >> TESTA SAID CERTAIN SERVICES WOULD BE EXEMPT - SERVICES HE |
00:04:07 | CALLED "ESSENTIAL", SUCH AS DAY CARE SERVICES FOR ADULTS AND |
00:04:09 | CHILDREN, HEALTH CARE SERVICES, AND THOSE RELATED TO EDUCATION, |
00:04:12 | HOUSING AND SOCIAL SERVICES. LATER IN THE WEEK THE |
00:04:15 | GOVERNOR'S OFFICE RELEASED A LIST OF SERVICES THAT WOULD BE |
00:04:17 | EXEMPT, INCLUDING: ADULT AND CHILD DAY CARE, PRESCHOOL, |
00:04:20 | TUTORING; DOCTORS, DENTISTS, MEDICAL TESTING AND NURSING |
00:04:23 | SERVICES OUTSIDE A HOSPITAL; UTILITIES AND RESIDENTIAL TRASH |
00:04:27 | PICK UP AND DISPOSAL; SOCIAL ASSISTANCE SERVICES, SOME LABOR |
00:04:31 | SERVICES SUCH AS MEAT SLAUGHTERING AND BOAT AND |
00:04:35 | AIRPLANE REPAIRS; AND VETERINARIANS - ALONG WITH |
00:04:39 | PERSONAL INSTRUCTION IN THINGS LIKE DANCE, GOLF AND TENNIS AND |
00:04:42 | NATIONAL ADS ON RADIO AND TV IN OHIO. |
00:04:43 | THEN THERE'S THE LIST OF WHAT'S NOT EXEMPT. |
00:04:47 | ENTERTAINMENT SUCH AS CABLE TV, TICKETS TO SPORTS AND CULTURAL |
00:04:52 | EVENTS, AMUSEMENT PARKS, CIRCUSES AND FAIRS, AND |
00:04:56 | HORSERACING, BILLIARD PARLORS AND BOWLING ALLEYS, ALONG WITH |
00:05:00 | DIGITAL DOWNLOADS OF BOOKS, MOVIES AND MUSIC AND MAGAZINE |
00:05:03 | SUBSCRIPTIONS; PARKING LOTS AND GARAGES, COIN-OP LAUNDRIES AND |
00:05:07 | MAILBOX RENTALS; PET GROOMING AND HORSE BOARDING; FINANCIAL |
00:05:12 | SERVICES SUCH AS INVESTMENT COUNSELING, TAX PREPARATION, |
00:05:15 | ACCOUNTING AND DEBT COUNSELING; SERVICES PROVIDED BY |
00:05:18 | ARCHITECTS, REAL ESTATE MANAGERS, TRAVEL AGENTS AND |
00:05:20 | INTERIOR DESIGNERS ALONG WITH THOSE OFFERED BY SOFTWARE |
00:05:23 | PROGRAMMERS, COURT REPORTERS, TELEMARKETERS AND DEBT |
00:05:26 | COLLECTORS - AND OF COURSE LOBBYISTS, CONSULTANTS AND |
00:05:29 | ATTORNEYS. ALSO ON THE LIST - FUNERAL |
00:05:33 | SERVICES, HAIR CUTTING AND STYLING, AND DATING SERVICES. |
00:05:36 | THE BUDGET ALSO INCLUDES AN EXPANSION OF MEDICAID TO PEOPLE |
00:05:41 | WITH INCOMES UP TO 138 PERCENT OF THE FEDERAL POVERTY LEVEL, |
00:05:44 | WHICH RIGHT NOW IS $15,415 A YEAR. |
00:05:46 | THE EXPANSION COULD ADD UP TO 545-THOUSAND PEOPLE TO THE |
00:05:52 | MEDICAID ROLLS IN OHIO AND WILL INCREASE THE STATE'S MEDICAID |
00:05:56 | BUDGET BY MORE THAN 13 PERCENT IN THE FIRST YEAR AND NEARLY 10 |
00:06:00 | PERCENT IN THE SECOND. BUT THE GOVERNOR SAYS IT WILL |
00:06:03 | ALSO HELP OHIO TO RECAPTURE 13 BILLION IN FEDERAL DOLLARS OVER |
00:06:06 | SEVEN YEARS. >> I, AS YOU ALL KNOW HERE, AM |
00:06:10 | NOT A SUPPORTER OF OBAMACARE . |
00:06:13 | I DO NOT BELIEVE IN THE INDIVIDUAL MANDATE. |
00:06:18 | I DO NOT BELIEVE IN THE COLLAPSING OF THE RATINGS OF OUR |
00:06:21 | INSURANCE INDUSTRY. AND AS YOU KNOW, I DECIDED TO |
00:06:24 | MOVE FORWARD WITH THE FEDERAL EXCHANGE, RATHER THAN THE STATE |
00:06:28 | EXCHANGE, WHERE I BELIEVE WE WOULD HAVE LOST CONTROL. |
00:06:30 | BUT I THING THAT THIS MAKES GREAT SENSE FOR THE STATE OF |
00:06:34 | OHIO, AND MAKES GREAT SENSE FOR THE STATE OF OHIO BECAUSE I |
00:06:37 | THINK IT WILL ALLOW US TO DELIVER CARE USING OUR DOLLARS, |
00:06:42 | TO PEOPLE WHO COME UP TILL NOW, HAVE NOT BEEN ABLE TO AFFORD |
00:06:46 | CARE THROUGH THEIR JOB, OR WERE NOT ABLE TO EVEN FIND A JOB AND |
00:06:53 | ARE EXTREMELY POOR. >> AND THE GOVERNOR SAYS THE |
00:06:55 | DECISION TO EXPAND MEDICAID WILL CHANGE IF THE FEDERAL |
00:06:57 | GOVERNMENT CHANGES ITS RULES ON REIMBURSING FOR MEDICAID |
00:06:59 | RECIPIENTS. BUT SOME CONSERVATIVES HAVE |
00:07:02 | SAID THEY HAVE A HARD TIME WITH THAT, BECAUSE IT'S DIFFICULT TO |
00:07:04 | PULL BACK A BENEFIT ONCE IT'S BEEN EXTENDED. |
00:07:06 | THE BUDGET ALSO INCLUDES THE SCHOOL FUNDING FORMULA RELEASED |
00:07:12 | LAST WEEK, AND THIS WEEK THE GOVERNOR'S OFFICE PUT OUT |
00:07:15 | SPREADSHEETS DETAILING EXACTLY HOW MUCH EACH DISTRICT WOULD |
00:07:18 | GET. NO DISTRICT WAS CUT, AS GOV. |
00:07:21 | KASICH PROMISED LAST WEEK. BUT MOST DISTRICTS GOT NO |
00:07:24 | INCREASE WHATSOEVER. MOST OF THOSE THAT DID GOT |
00:07:28 | INCREASES THAT WERE UNDER 50%. BUT THERE WERE SOME THAT SAW |
00:07:31 | HUGE HIKES IN THEIR FUNDING: AVON LAKE AND AVON IN LORAIN |
00:07:34 | COUNTY, LORDSTOWN IN TRUMBULL COUNTY, NEW ALBANY-PLAIN LOCAL |
00:07:38 | IN FRANKLIN COUNTY, OLENTANGY LOCAL IN DELAWARE COUNTY, |
00:07:41 | TWINSBURG IN SUMMIT COUNTY, VANDALIA-BUTLER CITY IN |
00:07:45 | MONTGOMERY COUNTY AND WOODRIDGE LOCAL IN SUMMIT COUNTY. |
00:07:48 | THE BUDGET ALSO INCLUDES ELEMENTS FROM THE HIGHER |
00:07:51 | EDUCATION REFORM KASICH ANNOUNCED LAST YEAR, IN WHICH |
00:07:54 | AID TO COLLEGES IS TIED TO THE NUMBER OF STUDENTS THEY GRADUATE |
00:07:57 | RATHER THAN THOSE WHO ARE ENROLLED. |
00:07:58 | THE SPENDING PLAN ALSO ENCOMPASSES THE GOVERNOR'S |
00:08:01 | TURNPIKE PLAN ANNOUNCED LAST YEAR. |
00:08:02 | AND KASICH SAYS BONDING AGAINST FUTURE TURNPIKE REVENUES WILL |
00:08:06 | KEEP LAYOFFS AT BAY AND ALLOW TOLLS TO BE FROZEN FOR 10 YEARS. |
00:08:10 | AND THERE WILL BE CONTINUING PAYMENTS FROM HIS PUBLIC- |
00:08:14 | PRIVATE AGENCY JOBSOHIO, WHICH LAST WEEK SAW THE COMPLETION OF |
00:08:17 | THE TRANSFER OF THE STATE'S LIQUOR PROFITS TO FUND ITS |
00:08:20 | OPERATIONS. AT THE END OF THE BUDGET CYCLE, |
00:08:24 | KASICH SAYS THE STATE'S RAINY DAY FUND WILL HOLD A LOT MORE |
00:08:27 | THAN THE 482 MILLION DOLLARS IN IT NOW. |
00:08:28 | >> OUR SURPLUS FUND WILL GROW TO 1.9 BILLION DOLLARS |
00:08:32 | , AND THAT IS IN A TWO-YEAR PERIOD. |
00:08:42 | WE STARTED OUT WITH A BILLION DOLLAR DEFICIT. |
00:08:45 | SO FROM AN $8 BILLION DEFICIT TO A $1.9 BILLION FOR +, |
00:08:51 | TRIGGERING AN AUTOMATIC TAX CUT OF $400 MILLION, THAT IS GOOD |
00:08:56 | NEWS FOR EVERY TAXPAYER IN THE STATE OF OHIO. |
00:08:59 | >> POLITICAL REACTION TO THE BUDGET WAS SWIFT AND STRONG - |
00:09:02 | AND GOT PERSONAL. THE OHIO REPUBLICAN PARTY AND |
00:09:04 | THE OHIO DEMOCRATIC PARTY BOTH ISSUED STATEMENTS AFTER THE |
00:09:06 | BUDGET CAME OUT, BUT THE RHETORIC GOT MORE HEATED A FEW |
00:09:09 | DAYS LATER, WHEN THE GOP LAUNCHED A WEBSITE |
00:09:12 | STOPOHIOJOBKILLERS.COM. ON THAT SITE, REPUBLICANS |
00:09:16 | LISTED BY NAME DEMOCRATS THAT GOP CHAIR BOB BENNETT SAID WERE |
00:09:19 | ACTIVELY CAMPAIGNING AGAINST OHIO'S IMPROVING ECONOMY BY |
00:09:23 | OPPOSING BOTH GOV. KASICH'S LAST BUDGET AND THIS |
00:09:26 | ONE. BUT DEMOCRATIC PARTY CHAIR, |
00:09:28 | REP. CHRIS REDFERN OF CATAWBA ISLAND, SAYS REPUBLICANS ARE |
00:09:32 | NOW DEFENDING A BUDGET THAT INCLUDES THOUSANDS OF NEW SALES |
00:09:35 | TAXES ON WORKING AND MIDDLE CLASS OHIOANS, WHICH HE SAYS |
00:09:37 | TOTAL 2.6 BILLION DOLLARS. AND HE SAYS BENNETT'S COMMENTS |
00:09:43 | SHOW THE PARTY IS DRAMATICALLY SPLIT OVER THAT. |
00:09:46 | HEARINGS ON THE BUDGET STARTED ON TUESDAY, THE DAY AFTER IT WAS |
00:09:49 | INTRODUCED. IT'S BEEN EMBRACED BY SOCIAL |
00:09:52 | WELFARE, MEDICAL AND BUSINESS GROUPS, WHICH ARE PLEASED WITH |
00:09:56 | THE DECISION TO EXPAND MEDICAID, AND MANUFACTURERS LIKE |
00:09:58 | THE INCOME TAX CUTS. BUT THE OIL AND GAS DRILLERS |
00:10:02 | ARE PREDICTABLY UNHAPPY ABOUT THE SEVERANCE TAX INCREASE, AND |
00:10:05 | TEA PARTY AND CONSERVATIVE GROUPS AND LAWMAKERS ARE |
00:10:08 | CONCERNS ABOUT THAT, ALONG WITH THE MEDICAID DECISION. |
00:10:11 | AND PROGRESSIVES AND DEMOCRATS SAY THE WHOLE PLAN FAVORS THE |
00:10:16 | WEALTHY AND RAISES TAXES ON THE MIDDLE CLASS. |
00:10:18 | TO GET A PERSPECTIVE ON HOW THE MATH AND THE POLITICS |
00:10:22 | ACTUALLY WORK IN THIS BUDGET, I'VE ASKED TWO LONGTIME BUDGET |
00:10:24 | VETERANS TO SHARE THEIR THOUGHTS ON IT - AS THEY DID WITH GOV. |
00:10:27 | KASICH'S FIRST BUDGET TWO YEARS AGO. |
00:10:30 | BILL SHKURTI WAS THE STATE BUDGET DIRECTOR UNDER DEMOCRATIC |
00:10:34 | GOV. RICHARD CELESTE. AND NEIL CLARK IS THE FORMER |
00:10:37 | CHIEF FINANCIAL OFFICER OF THE OHIO SENATE REPUBLICAN CAUCUS. |
00:10:39 | THEY WERE THE CHIEF BUDGET GURUS FROM THEIR PARTIES IN THE |
00:10:43 | MID TO LATE 80S - AND IN MY MIND STILL ARE. |
00:10:44 | THANK YOU BOTH FOR BEING HERE. LET'S START WITH THIS APPARENT |
00:10:51 | TAX SHIFT FROM A RELIANCE ON INCOME TAXES IN THE STATE TO |
00:10:55 | STATE SALES TAXES. LET'S TALK ABOUT THE KINDS OF |
00:10:58 | THAT. -- CONS OF THAT. |
00:11:01 | >> THEY ARE PLENTIFUL AND THE FACT THAT SINCE WORLD WAR II, WE |
00:11:07 | HAVE SHIFTED FROM GOODS TO SERVICES. |
00:11:09 | PARTICULARLY, IT BECAME MORE PRONOUNCED AS THE 1965, 1975 |
00:11:14 | ROLLED AROUND. WHAT ARE THE NEGATIVES TO THIS? |
00:11:17 | LOOK AT HOW MANY STATES ARE DOING THIS IN THE UNITED STATES. |
00:11:20 | REALLY ONLY THREE STATES THAT TI SALES TAX TO SERVICES. |
00:11:24 | THEY MAKE UP 1.8% OF THE TOTAL POPULATION IN THE UNITED STATES. |
00:11:29 | THREE STATES THAT ATTEMPTED IT AND PASSED IT REPEALED IT EVEN |
00:11:33 | BEFORE THE EFFECTIVE DATE, OR WITHIN A QUARTER AFTER THE BILL |
00:11:37 | WAS INTO EFFECT. MICHIGAN, FLORIDA, AND |
00:11:40 | MASSACHUSETTS. WHAT PROMPTED THE COMMUNITY |
00:11:43 | THERE TO GO IN AND OUT RICH? IN MANY CASES, IT WAS THE |
00:11:47 | DIFFICULTY IN COLLECTING THE TAX. |
00:11:50 | IT WAS THE DIFFICULTY IN APPLYING THE TAX TO MANY |
00:11:52 | DIFFERENT GROUPS. AS A RESULT, IN EACH OF THOSE |
00:11:55 | STATES, MANY POLITICIANS LOST THEIR RACE OVER THAT PARTICULAR |
00:12:00 | BOAT. IT IS THE APPLICATION OF THE TAX |
00:12:02 | THAT MAKES IT DIFFICULT TO DO. >> AND WHAT ABOUT THE PROS, |
00:12:08 | BILL? >> THE BROADER THE BASE IS |
00:12:12 | BETTER FOR TAXES, AND THAT IS WHAT GOVERNOR KASICH HAS |
00:12:17 | PROPOSED. YOU COULD ARGUE THAT YOU NEED TO |
00:12:20 | TAX ALL AREAS OF THE ECONOMY AND THE ONE THAT ARE GROWING. |
00:12:23 | NOW THAT WE ARE IN A MUCH MORE ELECTRONIC AGE WHERE COMPUTERS |
00:12:27 | CAN MAKE A MORE AUTOMATIC, YOU HAVE A BETTER CHANCE OF |
00:12:30 | ENFORCING THIS THAN A FEW YEARS AGO. |
00:12:31 | ALTHOUGH I DO NOT AGREE WITH EVERYTHING IN THE BUDGET, THIS |
00:12:35 | PARTICULAR PART OF IT, BROADENING THE SALES TAX BREAKS, |
00:12:39 | PICKING UP THE OIL AND GAS REVENUES, IS A GOOD PART OF IT. |
00:12:42 | MY CONCERN IS MORE ON THE REDUCTION IN INCOME TAX. |
00:12:45 | >> TO ME, YOU HAVE TO LOOK AT WHAT IS HAPPENING IN YOUR |
00:12:50 | SURROUNDING STATES AND THE OTHER 50 STATES. |
00:12:52 | WHEN NO OTHER MAJOR STATE IS USING A SALES TAX ON SERVICE, IT |
00:12:56 | WILL SEND A CERTAIN MESSAGE OUT THERE WITH WHAT IS HAPPENING. |
00:12:58 | LET'S LOOK AT OUR NEIGHBORS. INDIANA, ILLINOIS, MICHIGAN, AND |
00:13:05 | PENNSYLVANIA ARE ALL FLAT TAX ON INCOME TAX, RANGING FROM A LOW |
00:13:09 | OF 3.04%, TO A HIGH OF 5%. WE STILL HAVE A GRADUATE |
00:13:15 | BRACKET. IF YOU WANT TO COMPETE IN THIS |
00:13:17 | REGION AND BE A DRIVING FORCE TO BRING IN JOBS, LET'S GO AHEAD |
00:13:21 | AND HAVE A FLAT TAX. WHEN YOU TALK ABOUT RUNNING A |
00:13:25 | SALES TAX BASE, REMEMBER, WE CREATED A CAT TAX FOR A REASON. |
00:13:31 | NOW WHAT WE HAVE ARE TOO MANY TAXES COMING ON THAT ARE BEING |
00:13:35 | PASSED ONTO INDIVIDUALS, AND IT STARTED TO GET TO THE POINT, IN |
00:13:39 | MY OPINION, WHERE IT IS TOO MANY. |
00:13:41 | WE COULD HAVE EASILY ACCOMPLISHED THE SAME THING WITH |
00:13:44 | THE SALES TAX ON SERVICES BY DOUBLING THE COMMERCIAL ACTIVITY |
00:13:48 | TAX. >> WE DID NOT GO BACK TO LOOK AT |
00:13:52 | THAT, BUT THIS SEEMS A LOT LIKE WHAT WE TALKED ABOUT IN 2005, |
00:13:55 | WHEN THE CAT WAS CREATED. IF GRADUATED ACROSS-THE-BOARD |
00:14:01 | INCOME-TAX CUTS. SOME PEOPLE SAY THAT IS PART OF |
00:14:04 | THE PROBLEM TO. THIS BUDGET DEFICIT. |
00:14:05 | >> THERE ARE 54,000 TAXPAYERS UNDER THE CAT PAYING AN AVERAGE |
00:14:11 | OF $9,000. CONSIDERING ALL THE BUSINESSES |
00:14:15 | IN THE STATE, THAT IS NOMINAL. WHEN YOU LOOK AND WHAT IT WAS |
00:14:18 | INTENDED FOR IN 2005, IT WAS SUPPOSED TO BE A BROAD BASED TAX |
00:14:23 | THAT WOULD APPLY TO EVERYONE AND EVERYONE DOES PAY IT, OF COURSE, |
00:14:28 | A FEW EXEMPTIONS AND EXCLUSIONS, BUT THE PURPOSE WAS TO HAVE THE |
00:14:32 | BROAD BASE. THAT WAS A GOOD TAX BECAUSE WE |
00:14:35 | ALSO GOT RID OF THE TANGIBLE PERSONAL PROPERTY TAX. |
00:14:38 | WE DID THOSE CHANGES, BUT YET, PEOPLE ARE STILL CLAMORING THAT |
00:14:43 | WE NEED A BROADER SALES TAX BASE. |
00:14:45 | I DO NOT THINK SO. I THINK WE NEED TO TAKE A |
00:14:48 | CAREFUL LOOK AT THE TOTAL TAX BURDEN FOR INDIVIDUALS IN THE |
00:14:52 | STATE. WITHOUT GOING THROUGH A LOT OF |
00:14:55 | DIFFERENT THINGS -- WHAT WENT THROUGH THE REGULATIONS, |
00:15:01 | COMMUNICATIONS -- ALL OF THESE THING GOT PASSED ON TO THE |
00:15:04 | CONSUMER IN THE FORM OF THIS SALES TAX. |
00:15:05 | >> IS THAT WHAT IS HAPPENING HERE? |
00:15:08 | THE ARGUMENT HAS BEEN MIDDLE AND LOWER-INCOME PEOPLE WILL PAY |
00:15:11 | MORE. >> ALL YOU HAVE TO DO IS TAKE |
00:15:15 | WHAT YOU GET IN YOUR INCOME TAX CUT, THE LAW THAT BY 5%, AND |
00:15:19 | THAT IS HOW MUCH YOU CAN SPEND ON SERVICES FOR THE YEAR. |
00:15:22 | FOR MANY PEOPLE, THAT BREAK EVEN POINT IS A PRETTY LOW DOLLAR |
00:15:25 | AMOUNT. >> BILL, THE GOVERNOR SAYS WE |
00:15:29 | HAVE GONE FROM A BILLION DOLLAR BUDGET DEFICIT TWO YEARS AGO TO |
00:15:34 | A RAINY DAY PERTH -- SURPLUS OF $2 BILLION. |
00:15:36 | IS THIS BELIEVABLE TO YOU? >> IT IS BELIEVABLE, IN PART. |
00:15:42 | THE $8 BILLION FIGURE WAS BASED ON A BUDGET PROJECTION THAT A |
00:15:46 | NUMBER OF ASSUMPTIONS WHICH I THINK ARE EXCESSIVE. |
00:15:48 | BUT HAVE WE GONE FROM A BUDGET DEFICIT TO SURPLUS? |
00:15:52 | ABSOLUTELY. BUT HE IS NOT THE FIRST GOVERNOR |
00:15:55 | TO DO THAT -- HE DESERVES CREDIT FOR THAT -- BUT HE IS NOT THE |
00:15:58 | FIRST. IF YOU LISTEN, IT MAKES THEM |
00:16:02 | SOUND LIKE THEY ARE THE FIRST TO DO IT. |
00:16:04 | ALMOST EVERY GOVERNMENT COMES IN IN BAD ECONOMIC TIMES, |
00:16:08 | PARTICULARLY WHEN PARTIES CHANGE, THEY HAVE HAD TO ADDRESS |
00:16:11 | THE DEFICIT IN ONE WAY OR ANOTHER. |
00:16:12 | >> NEIL SAID THAT THE FLAT TAX OR DEALING WITH THE CAT WOULD |
00:16:22 | HAVE BEEN A GOOD IDEA. WHAT IS YOUR IMPRESSION? |
00:16:24 | >> YOU NEED TO LOOK A DISK COMPREHENSIVELY. |
00:16:29 | THE PART WHERE I WOULD DISAGREE A LITTLE BIT IS, THERE IS A LOT |
00:16:35 | OF CONJECTURE GOING BACK AND FORTH ABOUT WHETHER THIS |
00:16:37 | PARTICULAR SALES TAX BROADENING FALLS ON THE MIDDLE-CLASS OR ON |
00:16:41 | THE UPPER CLASS PEOPLE. MIDDLE-CLASS PEOPLE GET |
00:16:44 | HAIRCUTS, USE WASHING MACHINES, AND SO FORTH, CABLE-TV. |
00:16:49 | THERE IS OFFSET THEIR. RICH PEOPLE WILL BE MORE LIKELY |
00:16:55 | TO USE ACCOUNTS AND LAWYERS AND AT WHAT SORT OF THING. |
00:16:57 | EVERYTHING IS PONTIFICATING. THERE PROBABLY NEEDS TO BE A |
00:17:04 | SERVICE COMMISSIONER OR OFFICER, SOMEBODY THAT IS NON-PARTISAN, |
00:17:08 | TO LOOK AT THE BURDEN. THE FLIP SIDE OF THIS IS THAT IS |
00:17:11 | ONE PART OF IT. THE INCOME TAX CUTS, 20% OF THE |
00:17:15 | GOVERNOR PROPOSED, REALLY HELPS THE HIGHER INCOME PEOPLE. |
00:17:17 | THE PERCENTAGE IS THE SAME, BUT DOLLAR AMOUNTS, THEY SAVE A LOT |
00:17:21 | MORE. THAT IS WHERE I WOULD DISAGREE |
00:17:23 | WITH WHAT ABOUT GOVERNOR HAS PROPOSED. |
00:17:25 | WE HAVE HEARD THIS MANTRA FROM REPUBLICANS FOR THE LAST 50 |
00:17:31 | YEARS, IF YOU WANT ECONOMIC GROWTH, CUT TAXES AND REDUCE |
00:17:35 | REGULATIONS. THEY HAVE BEEN IN CONTROL FOR |
00:17:37 | ALMOST ALL OF THIS PERIOD. WE HAVE GONE THROUGH A 20% |
00:17:42 | INCOME TAX CUT AND ALSO A REDUCTION IN THE TANGIBLE |
00:17:45 | PERSONAL PROPERTY TAX, WHICH I AGREE WITH. |
00:17:46 | BUT WHAT HASN'T GENERATED FOR US IN JOBS? |
00:17:50 | I AM SURE THE GOVERNOR WOULD SAY, LAST MONTH WE WERE THE |
00:17:53 | GREATEST JOB PRODUCERS IN THE COUNTRY. |
00:17:56 | THAT IS TRUE, BUT THAT IS A SHORT RUN THING. |
00:17:59 | OVER THE LONG RUN, THE QUESTION IS, HOW WILL YOU REVITALIZE |
00:18:04 | OHIO'S ECONOMY? I WOULD ARGUE CUTTING TAXES HAS |
00:18:07 | BEEN TRIED AND HAS NOT WORKED. >> I WAS A STAFFER WHEN GOVERNOR |
00:18:15 | CASEY WAS IN THE SENATE. THE UPPER TAX BRACKET WAS 3.5% |
00:18:18 | THEN. OVER A PERIOD OF TIME, WITH |
00:18:21 | GOVERNOR CELESTE AND GOVERNOR VOINOVICH, THAT RATE WENT UP TO |
00:18:26 | 9 1/6%. OVER TIME, IT HAS BEEN REDUCED |
00:18:28 | AND CONTINUES TO BE REDUCED. IF WE COULD GET BACK TO 1980 |
00:18:32 | NUMBERS, IT WOULD CERTAINLY MAKE US MORE COMPETITIVE WITH STATES |
00:18:36 | AROUND US. IN THIS BILL, PROBABLY THE BEST |
00:18:39 | TAX BREAK IS THE TAX BREAK FOR SMALL BUSINESSES UNDER PASSED |
00:18:43 | THROUGH ENTITIES. HE NEEDS TO BE APPLAUDED FOR |
00:18:45 | THAT. THAT IS A SPECTACULAR WAY TO |
00:18:47 | CREATE CAPITAL INVESTMENT IN THIS STATE. |
00:18:49 | I CANNOT REALLY SAY HERE THAT THIS IS A 20% INCOME TAX CUT, |
00:18:53 | BECAUSE IT IS NOT. IT IS 7.5% FOR THE FIRST YEAR, |
00:18:58 | SECOND YEAR, AND IN THE THIRD YEAR, IF WE STILL HAVE A |
00:19:02 | REPUBLICAN-CONTROLLED GENERAL ASSEMBLY AND A REPUBLICAN |
00:19:05 | GOVERNOR, ANOTHER 5%. SO I WANT TO THE BELLY WITH |
00:19:09 | THINGS AS THEY ARE TODAY. FOR THE FIRST YEAR, 7.5%, WITH A |
00:19:14 | 5% INCREASE IN SALES TAX ON SERVICES, REDUCTION IN SALES TAX |
00:19:19 | FROM 5.5% TO 5%. >> I WANT TO ASK YOU ABOUT THE |
00:19:24 | SPENDING. SOME CONSERVATIVES SAY THERE IS |
00:19:27 | TOO MUCH SPENDING. THE AVERAGE SPENDING INCREASES |
00:19:31 | OF THE BUDGETS HAVE BEEN OVER. >> HAVE YOU GET FROM THE |
00:19:41 | STRUCTURAL IMBALANCE TO THE PROFIT? |
00:19:42 | I HAVE SPOKEN TO A LOT OF CONSERVATIVES. |
00:19:47 | THEY ARE CONCERNED. NOT AS MUCH ABOUT THE EDUCATION |
00:19:50 | FUNDING. THEY ARE CONCERNED ABOUT ONE |
00:19:52 | ITEM OF INCREASED SPENDING, AND THAT IS THE MEDICAID EXPANSION. |
00:19:56 | THAT HAS A LOT OF PEOPLE CONFUSED, A DIFFICULT CONCEPT TO |
00:20:01 | BE ABLE TO WRAP YOUR ARMS AROUND AND REALLY SEE WHAT THE |
00:20:05 | REALITY IS PIER THAT IS WHAT IS BOTHERING THEM. |
00:20:08 | THREE MONTHS AGO, WE DID POLITICAL COMMERCIALS BASHING |
00:20:11 | THE DEMOCRATS FOR OBAMACARE, AND NOW WE'RE COMING BACK SAYING, WE |
00:20:15 | WILL TAKE THE MONEY. WE DO NOT WANT OBAMACARE, BUT WE |
00:20:19 | WILL TAKE THE MONEY. >> THIS IS A CASE WHERE |
00:20:23 | REPUBLICANS HAVE CREATED THEIR OWN PROBLEM WITH THAT. |
00:20:25 | ANY GOVERNOR WHO IS WORRIED ABOUT THE STATE -- AGAIN, I DO |
00:20:30 | NOT ALWAYS AGREE WITH GOVERNOR KASICH, BUT IN THIS CASE HE IS. |
00:20:34 | HE WOULD LEAVE -- >> IS THERE A CHANCE IT WOULD |
00:20:40 | NOT BE THERE IN THE FUTURE? >> YOU HAVE THAT CHANCE WITH |
00:20:44 | ANYTHING, BUT YOU HAVE THE COMMITMENT AT LEAST FOR THOSE |
00:20:47 | THREE YEARS. 400,000 PEOPLE WITHOUT INSURANCE |
00:20:49 | THAT WOULD GET IT. IT HELPS THE STATE BUDGET AND |
00:20:52 | MOVE THIS DATE FORWARD. I THINK -- EVERYBODY THINKS, YOU |
00:20:57 | ARE JUST DOING THIS TO BE KIND TO THE POOR, SOME SORT OF |
00:21:01 | SOCIALISM. THE REAL SUPPORTERS OF THIS ARE |
00:21:03 | THE BIG HOSPITALS, PHYSICIANS, THE PEOPLE THAT PROVIDE THIS |
00:21:06 | CARE. IT IS EITHER NOT GETTING PAID |
00:21:08 | FOR OR BEING CHARGING -- BEING CHARGED TO EVERYONE ELSE. |
00:21:12 | OBAMACARE MAY NOT BE PERFECT, BUT IT IS AN IMPROVEMENT OVER |
00:21:17 | WHAT WE HAD. OHIO NEEDS TO TAKE ITS STAND AND |
00:21:20 | SEE IF WE CAN MAKE THIS WORK TO GET PEOPLE INJURED. |
00:21:23 | >> MY RESOLUTION TO THIS IS TO TAKE IT OUT OF THE BUDGET AND |
00:21:28 | HAS IT AS A SEPARATE BILL. BUT THOSE WHO WANT TO VOTE FOR |
00:21:31 | IT, VOTE FOR IT. >> BUT IT IS SUCH A HUGE PART OF |
00:21:35 | THE BUDGET, HOW DO YOU PULL IT OUT? |
00:21:37 | >> WE DID THAT WITH MBR'S. THERE IS NO SUCH THING AS NOT |
00:21:44 | BEING IN COULD DIVIDE THINGS UP. WE STILL LAUGH WITH THE BUDGET |
00:21:48 | WHEN IT WAS 1200 PAGES. NOW IT IS 6000 PAGES. |
00:21:51 | THERE IS NO SUCH THING AS A RULE THAT SAYS YOU CANNOT. |
00:21:56 | I THINK PEOPLE SHOULD BE GIVEN THE OPPORTUNITY TO VOTE ON THIS |
00:21:59 | AS A SINGLE ISSUE. IT MIGHT MAKE IT EASIER FOR THE |
00:22:02 | CONSERVATIVES, AND DO YOU REALLY NEED TO BE AT 130% TO GET THE |
00:22:08 | 100%? MAYBE YOU COULD DROP THE NUMBER |
00:22:10 | DOWN AND PICK UP SOME REPUBLICANS TO SAY, LET'S GO FOR |
00:22:14 | A SMALLER NUMBER. NO ONE IN THEIR RIGHT MIND CAN |
00:22:17 | SAY THAT THIS PROGRAM WILL GO ON FOREVER BECAUSE THE UNITED |
00:22:19 | STATES GOVERNMENT HAS A $16 TRILLION DEFICIT THAT IS GROWING |
00:22:23 | EVERY DAY. WHEN IT COMES TO CUTTING THE |
00:22:25 | BUDGET, EVERYTHING IS ON THE TABLE. |
00:22:27 | TO PRETEND THAT WE ARE GOING TO GET THIS MONEY FOR A LEAST THREE |
00:22:30 | YEARS IS FOOLISH. WE NEED TO ACCEPT THE FACT THAT |
00:22:33 | WE HAVE A LOT OF PEOPLE WHO ARE UNINSURED. |
00:22:35 | WE HAVE A LOT OF PEOPLE WHO NEED TO BE TAKEN CARE OF, AND WE |
00:22:39 | OUGHT TO FIND A WAY TO TAKE CARE OF THEM. |
00:22:40 | >> ANOTHER THING THAT PEOPLE HAVE ARGUED ABOUT IS THE SCHOOL |
00:22:45 | FUNDING FORMULA. I WONDER ABOUT YOUR THOUGHTS |
00:22:48 | ABOUT THE SCHOOL FUNDING FORMULA. |
00:22:50 | NOBODY IS GETTING LESS APPARENTLY, BUT YOU HAVE SOME |
00:22:53 | DISTRICTS GETTING HUGE INCREASES, INCLUDING NEW ALBANY |
00:22:57 | PLANE THE LOCAL, HIGH WEALTH DISTRICTS. |
00:23:01 | >> WHAT THE GOVERNOR SAID HE WANTED TO DO, BEFORE THE |
00:23:06 | PRINTOUTS -- THE PRINCIPLES THAT HE SET OUT ARE ABSOLUTELY |
00:23:12 | APPROPRIATE. HE WANTED THE STATES TO EVEN THE |
00:23:17 | DIFFERENCE BETWEEN THE TRACKS. THE MATTER WHERE THEY ARE BORN, |
00:23:21 | EVERYONE HAS AN EQUAL CHANCE TO SUCCEED AND EXCEL. |
00:23:23 | I DO NOT THINK ANYBODY COULD DISAGREE WITH THAT. |
00:23:26 | THE CHALLENGE HAS ALWAYS BEEN, FOR ANY GOVERNOR, WHEN YOU WORK |
00:23:32 | THAT THROUGH A FORMULA AND YOU HAVE 600-SOME GERRYMANDERED |
00:23:36 | SCHOOL DISTRICTS, THE MATTER WHAT YOU DO, IT COMES OUT FUNNY. |
00:23:39 | IT WAS INTERESTING, THE GOVERNOR'S PEOPLE WERE RELUCTANT |
00:23:42 | TO RELEASE THOSE PRINTOUTS. AT FIRST THEY SAID THEY DID NOT |
00:23:45 | HAVE THEM. NOW WE SEE WHY. |
00:23:49 | IT IS NOT THAT THEY WERE TRIED TO DO SOMETHING EVIL OR BAD, IT |
00:23:52 | IS JUST THE WAY THAT THE NUMBERS RIPPLE THROUGH. |
00:23:55 | THEY HAVE NOT MADE ANY CHANGES IN FIVE YEARS, SO NOW THEY HAVE |
00:24:00 | ALL THESE THINGS IN. ON THE SURFACE, SCURRY RESULTS. |
00:24:04 | I LIVE IN UPPER ARLINGTON, A WEALTHY DISTRICT, BUT NEW ALBANY |
00:24:10 | -- I SUSPECT A BIG PART OF THAT IS ENROLLMENT. |
00:24:14 | >> WHEN THEY SAY THEY HAVE NOT MADE CHANGES IN FIVE YEARS, THAT |
00:24:21 | IS NOT ACCURATE. THE ONE THING THAT IS |
00:24:23 | INTERESTING FOR BOTH BILL AND I -- BILL WAS HERE A FEW YEARS |
00:24:26 | BEFORE ME. IN MY 33 YEARS, WE PROBABLY |
00:24:30 | CHANGE THE FORMULA SIX OR SEVEN TIMES. |
00:24:33 | I WOULD LIKE TO HAVE A FORMULA WORKED FOR 13 YEARS, ONE TIME. |
00:24:36 | I APPLAUD HIM FOR DOING THIS. EVERYTHING THAT HAPPENED THERE |
00:24:43 | HAS TO BE DONE, BUT WE ALSO HAVE TO ACCEPT THE FACT THAT TO GET |
00:24:47 | IT BACK TO EQUAL STATUS, SO THAT EVERYONE IS TREATED THE SAME, |
00:24:52 | SOMEBODY IS GOING TO HAVE TO BE DISPLEASED IN THE SHORT TERM. |
00:24:54 | >> TOO LOW, TOO HIGH? >> I SUPPORT WHAT THE GOVERNOR |
00:25:01 | IS TRYING TO DO. >> IS A BIG ENOUGH? |
00:25:03 | >> YOU COULD ARGUE FOR MORE BUT IT WOULD BE POLITICALLY ARE TO |
00:25:09 | GET THAT THROUGH. YOU CAN TRY. |
00:25:10 | GIVEN WE HAVE A REPUBLICAN HOUSE, SENATE, AND GOVERNOR, YOU |
00:25:14 | WILL NOT GET MUCH, BUT AT LEAST YOU CAN HOPEFULLY GET THAT. |
00:25:17 | >> THANK YOU BOTH FOR BEING HERE. |
00:25:20 | >> AND THAT'S IT FOR THIS WEEK. FOR MY COLLEAGUES AT OHIO PUBLIC |
00:25:23 | RADIO AND TELEVISION, THANKS FOR WATCHING. |
00:25:24 | IF YOU'D LIKE TO ASK QUESTIONS, MAKE COMMENTS, OR WATCH THIS |
00:25:28 | WEEK'S SHOW OR EARLIER EPISODES, PLEASE VISIT OUR WEBSITE AT |
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00:25:35 | TIME FOR "THE STATE OF OHIO". |
Note : Transcripts are compiled from uncorrected captions