Beware Of Politicians Bearing Gifts.

Be they Greek or otherwise.

From the Dayton Daily News 1/30/15

“Ohio Gov. John Kasich wants to double the personal exemption for workers making less than $80,000 a year, eliminate income taxes for small businesses with less than $2 million in annual sales, and better tailor job training and social services for individuals.”

What this means in general terms is that a taxpayer in the stated income range would be able to double the current personal exemption of $1,700 to $3,400. All things being equal an earner with an Ohio income of $50,000 would save an estimated $64 per year.

On the road to Iowa and New Hampshire the governor is bragging about cutting taxes and balancing the budget. What he doesn't talk about is the means used to accomplish this fiscal magic. Where did the dollars come from? Let me count the ways. 1. Increased property taxes for residential property owners. 2. Elimination of the senior citizen home owner $300 per year property tax reduction for most seniors born after 1948. 3. Slashing tax revenue sharing with local governments and public schools.

These funding reductions means that small cities like Wilmington have had to cut services that provide safety and quality of life functions. Wilmington is in the sad position of having to operate with a smaller than needed police force. The city parks are operating on a bare bones budget and relying on charity to maintain services. Drive down almost any city street and observe the results of underfunded street maintenance and repair budgets. The streets are in such bad shape that city council is debating whether to ask the voters for a two mill property tax increase or to raise quarter percent income tax a quarter percent. Council has little choice but to find new revenue to replace the lost state share.

Local school districts are operating at a minimal basis and may soon have to ask the voters for a tax increase.

Now, lets look at the $50,000 earner's place in this discussion. The income tax increase would cost him or her $125 per year. If a property tax is the chosen and the earners home was valued at $150,000, the property tax increase would be $105. That amount is 12.5 percent higher than it would have been prior to the governors budget balancing tax increase.

Thanks Gov.

Paul Hunter paulhunter45177@gmail.com