The tax trap

A fact based opinion.

Who benefits and who loses when income taxes are decreased and sales tax increased?

A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. In terms of individual income and wealth, a regressive tax imposes a greater burden (relative to resources) on the poor than on the rich — there is an inverse relationship between the tax rate and the taxpayer's ability to pay as measured by assets, consumption, or income. These taxes tend to reduce the tax incidence of people with higher ability-to- pay, as they shift the incidence disproportionately to those with lower ability-to-pay.

http://en.wikipedia.org/wiki/Regressive_tax

An example of a regressive tax that applies to all earners:

Social Security tax is an example. For 2007, you pay 6.2% tax on wages up to a maximum wage of $97,500. Therefore:
a. A person who makes $30,000 a year pays $1,860 (30,000*.062) in tax or 6.2% of wages. \
b. A person who makes $200,000 a year pays $6,045 (97,500*.062) in tax or 3% of wages. 
c. A person who makes $500,000 a year still pays $6,045 in tax (97,500*.062) or 1.2% of wages.
Since the richest people pay the smallest percentage of their income in tax, it is a regressive tax.

https://answers.yahoo.com/question/index?qid=20071215155509AAPQT9e

The Social Security tax definition is not a pure example due to the return of the tax to the payer upon retirement

A better example of a regressive tax is the sales tax. Money spent to buy essential and nonessential items that have a sales tax of 7 percent, for example, hits those with a lower income harder than it hits higher-income individuals. Fees are another example of a regressive tax, because lower-income individuals pay a larger percentage of their income for them. Examples are toll roads, licenses, admission to museums and parks, and parking. A third example of a regressive tax is an excise tax, which is a tax on the production or sale of certain commodities such as alcohol, cigarettes, firearms, gasoline, air travel and telephone services. Excise taxes are typically hidden taxes because they are incorporated into the price of the commodity without consumers' realizing it.

At some income level, dollars not used for consumption escape the sales tax.

Paul Hunter

Ohio Health Update

Ohio County health outcome ranking.

http://www.countyhealthrankings.org/app/ohio/2014/rankings/highland/county/outcomes/overall/snapshot

Representative Cliff Rosenberger's District 91 and a part of Senator Bob Peterson's 17^th district.

The Ohio House of Representatives, including our Rep. Rosenberger filed a protest letter against the governor's attempt to unilaterally expand Ohio's Medicaid program.

Clinton County:

Seventy-fifth for health outcome

seventy-fourth in life span

Sixty-fourth in quality of life

Highland County:

Seventy-ninth for health outcomes.

Eighty-fifth in life span.

Seventy-fifth in quality of life.

Pike County:

Eighty-third for health outcomes.

Eighty-fourth in life span.

Eighty-first in quality of life.

The Ohio House of Representatives, including our Rep. Rosenberger filed a protest letter against the governor's attempt to unilaterally expand Ohio's Medicaid program.

For comparison:

Delaware County:

Third best of for health outcomes

Second in life span

Third in quality of life.

Scioto County:

Eighty eighth for health outcomes.

Eighty-eighth for life span

Eighty-seventh in quality of life.

See web site for detailed explanation.

Paul Hunter

Wilmington School District

The Ten Top Compensated Wilmington
School Employees 2013/2014 School Year
Name	Title	Total Comp.*
Ed Blohm	Director H/R/AD	$133,846
Ronald Sexton	Superintendent	$126,514
Nicole Quallen	Dir.of Instruction	$124,718
Natalie Harmeling	Pupil Services	$122,532
Matt Freeman	Middle Sch. Princip.	$118,739
Brian Camp	Asst. HS Principal	$118,032
Kim Deweese	Treasurer	$117,967
Curt Bone	Business Director	$116,617
Shannon Koblentz	Holmes Principal	$113,660
Brent Carey	H/S Principal	$113,148
Base Data From The School Treasurer
*Compensation includes all district paid benefits Compiled by Paul Hunter

Bait and Switch

When a tax cut is not a tax cut; an editorial.

Our Governor successfully pushed for state income tax reduction in the last budget and wants to reduce the tax even further in the new budget.

Sounds good right?

In September 2013 income tax rates decreased by 8.5%. Good for the big earner not so much for the little earner.

For example: A taxpayer with taxable earnings of $40,000 saves a whopping $156 per year while a fellow resident with earnings of $500,000 saves $3,800*.

At the same time a sales tax increase took effect, resulting in this possible scenario:

A Clinton county resident earning $40,000 uses his savings from the income tax reduction to purchase a $30,000 car and would pay 6% of his income in sales tax. His more frugal neighbor earning $500,000 would pay a mere ½% of 1% of income for the same purchase.

The last budget bill drastically cut the amount of income and sales taxes that residents send to Columbus each year and that was returned for local services. The result of this reduction results in local schools and governments having to either cut services or ask for increased local taxes.

http://www.policymattersohio.org/local-gov-jul2013

In 2007 the state instituted a new homestead property tax exemption for home owners over the age of 65.

http://ohioline.osu.edu/ss-fact/pdf/0206.pdf

In the latest budget, the homestead Exemption is being scaled back. Everyone currently receiving the exemption is grandfathered in – they won’t lose their tax break. But now, new applicants to the program will only be eligible if they make less than $30,000 a year. If our $40,000 a year man owned a $100,000 home and became age 65 this year his property tax bill will increase by as much as $300 per year over those already receiving the exemption.. Any new tax levies will cost an additional 12.5% as a result of changes in property tax law.

*http://www.tax.ohio.gov/ohio_individual/individual/annual_tax_rates.aspx

Paul Hunter contact at paulhunter45177@gmail.com

Water and Waste Water Ain't Free

Utility Costs

Each year the City of Oakwood (near Kettering) compiles a list of sewer and water rates from information supplied by 66 jurisdictions in Southwest Ohio including Wilmington.

http://www.tippcityohio.gov/uploads/Utilities/Water_WW/2013WaterSewer.pdf

Rates are based the consumption of 22,550 gallons of water over a three month period

Wilmington's ranking:.

2012

Sewer: 18^th highest @ $131 (Loveland was #1 at $211 and Dayton #66 at $70.)

Water: 5^th highest @ $136 (Tipp City was #1 at $185 and Fairfield was #66^th at $55.

Water +sewer 12^th highest @ $267 (Troy was #1 at $375 and Union was #66 @ $133

2013

Sewer

Water: 7^th highest @ $136 (Tipp City $198 and Enon #66 at $55)

Sewer: 20^th highest @ $131 (Troy $226 and Dayton $72

Water + sewer 12^th highest (Troy $419 and Union $133.

Compiled by Paul Hunter

Our State Senator

Bob Peterson's Political Summary 

Gender:	Male
Family:	Wife: Lisa; 3 Children: Sarah, Hannah, Todd
Birth Date:	03/15/1962
Birth Place:	Chillicothe, OH
Home City:	Sabina, OH
Religion:	Christian

special interest grades:

Ohio Chamber of Commerce 100% http://www.ohiochamber.com/mx/hm.asp?id=mission

American Conservative Union 100% http://www.rightwingwatch.org/content/american-conservative-union

Buckeye Firearms Association 88% http://www.buckeyefirearms.org/about-buckeye-firearms-association

National Rifle Association (a de facto gun manufacturers lobby) 92% http://www.huffingtonpost.com/2013/01/11/nra-gun-control-firearms-industry-ties_n_2434142.html

Ohio Federation of Teachers 0% (see vote to reduce school funding below) http://oh.aft.org/about-us

Total Campaign Contributions: $172,404 http://votesmart.org/candidate/95755/bob-peterson#.UycPEPldV_4

Top Contributor: Self $27,000

Second Highest: Ginni Ragan (Elder care Aging Medicaid expansion Advocate) $11,000

Lowest sector Labor $600

Votes

Prohibits Internet Cafes: Yea

Expands Gambling Yea

Prohibits “Jobs Ohio” (a quasi public entity that spends tax payer's money) from being publicly audited. Yea & Sponsor

Amends definition of a loaded gun: Yea (Definition of unloaded firearm in a vehicle

A firearm in a vehicle now will be considered unloaded if there is no ammunition in the firearm in question, and no magazine or speed loader containing ammunition is inserted into the firearm in question. Before amendment ammo had to be inaccessible )

Repeals limits on credit card interest rates for certain banks. Yea http://www.lsc.state.oh.us/fiscal/fiscalnotes/129ga/hb0322in.pdf

Prohibits texting while driving nay(?)

Prohibit insurance coverage of abortions Yea

Resolution supporting change to Ohio Constitution banning most if not all provisions of the Afforable Health Care Act Yea

Concealed guns in Barrs and clubs Yea

Suspension of collective bargaining rightsfor public employees Yea (bill repealed by Ohio voters)

Reduce required school funding Yea

Compiled by Paul Hunter

Crime and Punishment in the 21st century

Good and evil in the brain scan age.

Would justice have been served if Whitman had survived and been executed?

Charles Joseph Whitman (June 24, 1941 – August 1, 1966) was an American engineering student and former U.S. Marine, who killed sixteen people and wounded thirty-two others in a mass shooting rampage in and around the Tower of the University of Texas at Austin on the afternoon of August 1, 1966. Three people were shot and killed inside the university's tower and eleven others were murdered after Whitman fired at random from the 28th-floor observation deck of the Main Building. Whitman was shot and killed by Austin police officer Houston McCoy.

In fact, Whitman complained of headaches and an altered mental state in the days and weeks leading up to the killings. His own suicide note read that "I do not really understand myself these days. I am supposed to be an average reasonable and intelligent young man. However, lately (I cannot recall when it started) I have been a victim of many unusual and irrational thoughts."

Whitman knew that something was wrong. His note further reads, "After my death I wish that an autopsy would be performed on me to see if there is any visible physical disorder." And indeed there was. Whitman was found to have a glioblastoma, a type of brain tumor, pressing against regions of the brain thought to be responsible for the regulation of strong emotions.

In this era of brain scans and analysis two things could have occurred, a. He would have undergone surgery to remove the tumor prior to acting out or, b. The tumor would have been discovered after the shooting and a jury might have acquitted him based on brain science.

Was Mr. Whitman evil or just sick.?

Would justice have been served if this man had been locked up for life?

In 2000, an otherwise normal Virginia man started to collect child pornography and make sexual advances toward his prepubescent stepdaughter. He was sentenced to spend time in a rehabilitation center, only to be expelled for making lewd advances toward staff members and patients. The next step was prison, but the night before he was to be incarcerated, severe headaches sent him to the hospital, where doctors discovered a large tumor on his brain. After they removed it, his sexual obsessions disappeared. Months later, his interest in child pornography returned, and a scan showed that the tumor had come back. Once again it was removed, and once again his obsessions disappeared.

Was the man evil or just sick?

Paul Hunter

A Waste of Time and Money

This is 2014, time to stop making murderous international drug cartels rich.

A typical article in a local newspapers -According to the Washington C. H. Record Herald a WCH woman was arrested Friday night for trafficking marijuana.

Have we learned nothing from the failed prohibition of alcohol in the1920s?

It's a part of the human condition to ingest mind altering substances.

In my opinion it's better to control and regulate drugs such as cigarettes, alcohol and marijuana than to allow criminals to grow rich from their murderous cross border trafficking. Our jails are filled to overflowing with those arrested for minor violations of outdated laws. Cash strapped local government budgets are being busted in the failed effort to stop a never ending human activity.

Ohio doesn't have to reinvent the wheel because a growing number of states have come to their senses and voted to legalize, tax and regulate pot production and sale. A portion of the tax collections can be used to mount an advertizing campaign aimed at young people showing the down side of marijuana use and modeled after the successful anti-tobacco messages.

Paul Hunter contact: paulhunter45177@gmail.com.

The Buying and Selling of Votes

As an example:

Steve Stivers, our congressman is not the first nor will he be the last politician of either party to fall into the money trap. As long as dollars are considered more important than individual votes our system is prone to favor the special interests over the common interest.

COLUMBUS -- "Sometimes political puzzles are easy to solve: In Ohio Congressional District 15, 1,689 potential voters have sent messages to candidate Steve Stivers asking him to tell them his position on mountaintop removal coal mining. Stivers has replied to none of them and won't even acknowledge receiving them. Why? When a public official's actions don't seem to make sense, we look at campaign finance reports. We expected to find the top of the contributor list crowded with financial sector firms, given Sen. Stivers' years as a Bank One lobbyist. We were wrong. According to the Federal Elections Commission, by far the biggest contributor to Steve Stivers' 2008 campaign thus far has been American Electric Power," Catherine Turcer, Director,Money in Politics Project, Ohio Citizen Action. 40KB doc.

From Mr. Stivers: “As you know, H.R. 3826, the "Electricity Security and Affordability Act", was introduced by Rep. Ed Whitfield (R-KY) on January 9, 2014. This legislation restricts the Environmental Protection Agency (EPA) from issuing or enforcing rules that establish performance standards for greenhouse gas emissions unless those rules rely on commercially available technology. The House passed this legislation in a bipartisan vote of 229-183 on March 6, 2014. It now moves to the Senate for further consideration.”

As mentioned in the Money in Politics article above, Mr.Stivers was a bank lobbyist for several years.

As a lobbyist for Bank One, Stivers lobbied successfully for a 2002 Ohio bill that blocked Ohio cities from enacting local ordinances intended to stop predatory mortgage lending.

As a state senator, Stivers was one of four lawmakers to oppose a 2006 bill that gave consumer protections against mortgage lenders.

AEP may have been his largest individual financial contributor at $33.000, but the finance/Insurance/Real estate sector contributed $439,059 to his $1,326,150 total raised for the 2014 cycle to according to VoteSmart

http://votesmart.org/candidate/campaign-finance/45333/steve-stivers#.Ux0ZUvldV_4

Paul Hunter

Our Schools

A letter was sent to senior citizens in support of the 2012 Wilmington schools income tax renewal. Since that successful campaign the state legislature, including our representative Cliff Rosenberger, has voted cut financial aid to public schools. Our sales, income, and, to an extent, property taxes are being used at the state level to balance the state's budget and cut state taxes.

As a result of those cuts and the devaluation of the Air park property it looks like the school district will have to go to the voters to replace the lost revenue that amounts to hundreds of thousands of dollars per year. Passage of an additional half percent income tax or a two or three mill operating levy property tax will be needed just to maintain the current bare bones operation.

As a result of the school's financial dilemma I feel compelled to repeat my message in part.

As seniors, we worked hard during our younger years and paid our taxes to support local education. Now, as home owners, we seniors receive well-earned school tax exemptions including a yearly $150 reduction in school property taxes and exemption from school income taxes on social security earnings, military retirement pay and the portion of civil service retirement based on military service.

By voting to support a much need levy, we can help meet educational needs of our grandchildren and young people with no negative effect on our fixed incomes.

There is an increasing need for an educated workforce in the face of disappearing manufacturing jobs.

School district administrators, teachers and workers are doing their part to meet the reduction in funding. They have declined pay raises and will contribute a larger share to health insurance premiums and retirement systems, resulting in a significant decrease in their take home pay. The School Board eliminated some administrative positions and added their duties to remaining staff, helping keep classrooms functioning at near normal levels.

It's not a matter of having or not have children in school because an educated work force is a national resource that all residents benefit from.

Paul Hunter

Winter Put the Hole in Pothole

Imagine that you are entering a side street near your home and due to oncoming traffic you are unable to avoid hitting a deep pothole in the middle of the intersection. As a result of this mishap several hundred dollars of damage was done to your right front wheel.

If you have a high deductible or liability insurance you will be stuck with a repair bill. Or, will you?

Ohio law states that local governments can be liable for damages caused by poorly maintained roadways under their jurisdiction. Counties, cities and township are responsible for roads and streets dedicated to their responsibility.

The one caveat covering this responsibility is that the roadway fault must have been reported to the appropriate authorities.

In Wilmington the reporting of potholes etc. can be done by calling the Mayor's office or going to the cities citizens help line http://www.egovlink.com/wilmington/action.asp?actionid=11025 and complete the pothole report form. You will be doing yourself, your neighbor and especially the city street department a service.

Paul Hunter

Political Definitions

In the current political climate the meaning of words has become corrupted by those that would attempt to confuse the populace. Following is my attempt to clear the confusion by using standard dictionary definitions. Definitions may vary somewhat depending on source.

A communist is: A member of a political party that supports communism.

Communism is, in theory: A classless, moneyless, and stateless social order structured upon common ownership of the means of production, as well as a social, political and economic ideology and movement that aims at the establishment of this social order.

A socialist is: A person who advocates or practices socialism.

Socialism is, in theory: The stage in Marxist-Leninist [communist] theory intermediate between capitalism and communism, in which collective ownership of the economy under the dictatorship of the proletariat has not yet been successfully achieved.

A (small d) democrat is: a person who believes in the political or social equality of all people.

Democracy is, in theory: A system of government by the whole population or all the eligible members of a state, typically through elected representatives.

A liberal: Believes that government should be active in supporting social and political change.

A conservative: Holds to traditional attitudes and values and cautious about change or innovation, in relation to politics.

A libertarian is: One who advocates maximizing individual rights and minimizing the role of the state.

Libertarianism is. An extreme laissez-faire* political philosophy advocating only minimal state intervention in the lives of citizens.

* the theory or system of government that upholds the autonomous character of the economic order, believing that government should intervene as little as possible in the direction of economic affairs

Dictatorship: A form of government in which one person or a small group possesses absolute power without effective constitutional limitations. [Poster's note: most if not all communist states suffered arrested development and never progressed beyond this point.]

A plutocrat is: A person whose power derives from their wealth.

A plutocracy is: A government by the richest people.

An oligarch is: A member of a small group that runs a country or large organization.

Oligarchy is: A form of government in which all power is vested in a few persons or in a dominant class.

An anarchist is: A person who believes that government and laws are not necessary.

Anarchy is: A state of society without government or law.

Paul Hunter

City's Landfill

Presentation to Council 2/20/14

Last year I gave a similar presentation to council and considering the renewed interest in the subject, it's time to update the information. New data from the Ohio EPA, the city auditor and the county solid waste district change some of the previous assumptions.

Question: Do we really need near or mid term changes in our landfill operations?

Residential pickups, including yard waste, limbs and large items are being done in a timely manner and at a reasonable cost to the residents. I suspect that the complaint rate is pretty low.

Our curbside recycling program, costs have been reduced and participation is increasing.

The landfill financial situation is looking pretty good. The sanitation department had a $600,000 unencumbered carry over reserve in 2012. The carry over to 2014 is down only 1%. Which leaves sufficient funds for unexpected expenses.

Thanks to the solid waste committee's work to bring our tipping fees up to date we appear to have rates about right. Compared to the 1% decline in the carry over we saved 13% of valuable airspace volume in 2013. At current daily tipping rates. That 13% translates into six months extension of present cell life.

According to the Ohio EPA the present landfill airspace capacity would support more

than four years of tipping at current rates of fill.

In hindsight maybe we could have waited another two years before adding the new capacity. That would have allowed the current construction bond balance of $200,000 to be paid in full before incurring new debt.

The idea of bringing in an outside manager, for a system that is working for the city’s residents at the present time, needs to be examined.

At present, landfill operations are on a sound financial footing. Expenses and revenues are in balance with a substantial carry over to pay unexpected expenses. No tax money is being used for operations of the department. Because the landfill is a public facility and has a proprietary financial structure that, according to the Ohio Revised Code, is to be a break-even operation. Money generated by the facility must be spent on the facility. Looking at recent fee-volume history it’s difficult to see any realistic way to increase revenue without increasing commercial dumping significantly. Any such effort, that would include increased truck traffic on Nelson Ave., would meet stiff political resistance from residential neighbors.

In any event, the soon to be created vertical expansion will, according to the Ohio EPA, allow around 15 more years of operation at 2013 tipping rates. If a major landfill decision decision needs to be made in ten years or so we have plenty of time to consider further actions.

In the meantime I would encourage the city to do a serious cost benefit analysis of adding a roll off capability. Why let Rumpke make a profit from servicing our local commercial entities such as Lowes. I was informed that the sanitation department is looking into that option.

A renewed effort should be undertaken to reduce the dumping of recyclable cardboard into the landfill. It costs the smaller commercial businesses money and fills up valuable airspace

At present and in the mid term the landfill capacity is sufficient, the sanitation fund is in balance, and the service to the residents is good.

If it ain't broke let’s not try to fix it.

The conclusions made in this presentation are my own and are open to examination.

Paul Hunter

 

Reducing Taxpayer Subsidies

“While Washington D.C. bickers, the Gap (GPS) effectively raised its own minimum wage to $10 an hour. The company says the wage increase will impact 65,000 of its employees in the U.S. and will be phased in over the next two years.”

Conventional conservative wisdom would predict that The Gap is about to go belly up.

But maybe, just maybe, those employees can sign up with the ACA and give up one or two other jobs for the unemployed to take. An additional benefit will be that the increased income will allow many of these employees to leave the taxpayer supported safety net. 65,000 consumers with more cash to spend will certainly be an overall job creator.

Paul Hunter