Sunday, January 1, 2017

Another Supply Side Failure


Update 1/7/17 Columbus Dispatch
The latest report on [Ohio] state tax revenue is another sobering reminder that, despite Ohio’s relatively low unemployment rate and a few other positive indicators, the overall economy has struggles.
State income-tax revenue in December came in below the estimate, making it the fifth-straight month that revenue missed its mark. Meanwhile, non-auto sales-tax revenue barely surpassed its projection, the first time it has done so in the first six months of this fiscal year, which began July 1. [2016]
Ohio Governor Kasich and his captive legislature fell for one of the oldest scams in political economics. Reduce taxes and total tax revenue will increase as a result of increasing business activity. Everybody loves a tax cut!
Even by starving local governments and school districts, state revenues haven't kept up with even minimal state budget needs.
From an article from the 1/1 Dayton Daily News: “Kasich warns of a recession” followed by “Ohio's lackluster economic performance”.
In the same edition another indicator of slowing economic conditions is the near zero population growth for the state.
Paul Hunter paulhunter45177@gmail.com


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