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Wednesday, Oct 28 2015

The GOP Field's Big-Donor-Friendly Tax Agenda That Favors The 1%

Oct 28, 2015

The tax plans Marco Rubio, Jeb Bush, Donald Trump, and the rest of the GOP field are shilling at tonight’s debate are proof of their primary allegiance to big money donors like the Koch brothers and the Wall Street interests bankrolling their campaigns.

Across the board, candidates are looking to slash corporate tax rates and dramatically reduce taxes on top income-earners — Marco Rubio would even go so far as to eliminate the capital gains tax, which is even more of a giveaway to the wealthy. In 2011, Mitt Romney would’ve paid NOTHING in taxes under Rubio’s plan. Jeb Bush likes to say his plan is “populist,” because it eliminates the carried interest loophole — but the top 1% of income earners would see a 11.6% bump in after-tax income under his plan — as compared with a 2.9% increase for the middle class. Bush would keep an extra $800,000 annually under his own plan.

It’s nothing we haven’t seen before — it’s the same flawed, out-of-touch tax agenda advocated by George W. Bush and Mitt Romney.

Here’s where the candidates stand:

Rubio On Taxes

Plan Favors The Wealthy

PBS: Rubio Signed A Tax Proposal That “Would Slash Federal Tax Bills For Many Of The Wealthiest In The Country.” According to PBS, “Florida Sen. Rubio wrote a book in December outlining proposals to help low-income and middle-class families. In February he signed on to a sweeping tax proposal that does not cut top rates as much as Bush’s plan but does eliminate taxes on investment income. That would slash federal tax bills for many of the wealthiest in the country.” [PBS, 9/13/15]

Rubio’s Tax Plan Was Widely Criticized 

Fortune: Rubio’s Tax-Code “May Be One Of The Least Sexy Options Available.”According to Fortune, “In the list of potential issues to base your presidential campaign on, the tax-code may be one of the least sexy options available. Florida Senator Marco Rubio, though, seems to be making that one of the centerpieces of his fight for the Republican nomination.” [Fortune, 8/24/15]

Wall Street Journal: The Rubio-Lee Tax Proposal “Does Nothing For Economic Growth.”According to Wall Street Journal, “The reason is that unlike the investment portions of Rubio-Lee, the child tax credit does nothing for economic growth. The only growth case for it is the Keynesian claim that it would boost consumer spending and aggregate demand, but by now we’ve seen how that doesn’t work.” [Wall Street Journal, 6/17/15] 

The Rubio-Lee Tax Proposal Increased The Child Tax Credit By “$2,500 Per Head.”According to the Wall Street Journal, “The bad news, and it’s considerable, is that these gains are accompanied by a major increase in the child tax credit. This credit was created in 1997, and after a George W. Bush expansion it now provides $1,000 a year for each dependent under 17, phasing out between $75,000 to $95,000 for single filers and $110,000-$130,000 for families. Rubio-Lee would raise the credit to $2,500 per head. The left-leaning Tax Policy Center (TPC) estimates this would forgo revenue of $1.576 trillion over a decade. The Tax Foundation estimate is in the same ballpark—notably, on both a static budget basis and using dynamic scoring.” [Wall Street Journal, 6/17/15] 

Gainesville Sun Editorial: “Rubio Is Singing The Same Tired Old GOP Song When It Comes To Tax Cuts.” In an editorial The Gainesville Sun wrote, “For supposedly being a new kind of Republican, Sen. Marco Rubio is singing the same tired old GOP song when it comes to tax cuts. […] In his book ‘American Dreams’ and on the stump, he has proposed an economic plan that he claims will help ordinary Americans like his parents rather than just the super-rich. Unfortunately, the plan includes tax cuts that the Associated Press reported last week would drive up the debt by as much as $4 trillion over the first decade — forcing further cuts to programs that benefit an aging population and the poor. […] Rubio’s plan would also reduce all corporate taxes to 25 percent, replace most deductions with a credit of up to $2,000 per filer, and expand the child tax credit to $2,500, the AP reported. A piece in the New York Times in March referred to Rubio’s proposal as the ‘Puppies and Rainbows Tax Plan’ because it provides goodies all around without accounting for how the trillions in lost revenue will be made up. […] Rather than being a different kind of Republican, Rubio is just following in President Ronald Reagan’s tradition of backing big tax cuts and military budget increases that result in a ballooning debt.” [Gainesville Sun, 5/15/15] 

Avik Roy: Rubio-Lee Tax Plan Has “A Ton Of Problems.” In a column for Forbes, Avik Roy wrote, “Now, I’m a card-carrying reformocon, but I see a ton of problems with the Lee-Rubio child tax credit. First of all, there’s no empirical evidence that the plan would actually lead to the production of future taxpayers. Most of the tax credits would go to parents who’ve already borne children and have no interest in bearing more. Furthermore, to the degree that the credit incentivizes more childbearing, it may increase out-of-wedlock births. Numerous studies indicate that children born out of wedlock have a far higher risk of living their lives in poverty: net recipients, not financiers, of the entitlement state.” [Forbes, 5/25/15]

  • Avik Roy: Rubio-Lee Tax Plan Would Eliminate  “Payroll Tax Liabilities For Significant Portion Of The Population.”In a column for Forbes, Avik Roy wrote, “Second, we already have a democratic imbalance, with two-fifths of Americans experiencing no income tax liabilities. Lee-Rubio would worsen that problem by eliminating payroll tax liabilities for a significant portion of the population. The U.S. tax code is already the most progressive in the industrialized world; Lee-Rubio would make that worse.” [Forbes, 5/25/15]
  • Avik Roy: Rubio And Lee Failed To Consider The Budgetary Impact Of The Credit.In a column for Forbes, Avik Roy wrote, “Third, because the credit is refundable against payroll taxes, it would either accelerate the impending bankruptcy of the programs funded by payroll taxes–Social Security and Medicare–or count as new federal spending, spending that Lee-Rubio doesn’t offset with cuts elsewhere.” [Forbes, 5/25/15]
  • Avik Roy: Rubio-Lee Tax Credit Would Increase The Deficit By More Than $1.7 Trillion, Without Contributing To Growth.In a column for Forbes, Avik Roy wrote, “And fourth, as the Tax Foundation analysis points out, the child tax credit would increase the deficit by more than $1.7 trillion over a decade, while contributing nothing to economic growth. Think about it this way: The Lee-Rubio child tax credits are at least $700 billion costlier than the tax credits deployed by ObamaCare to offer health coverage to the uninsured. That $1.7 trillion could have been used to raise living standards for every American by further reducing individual and corporate tax rates. For Senator Rubio it’s a missed opportunity.” [Forbes, 5/25/15]

Vox: Rubio Is Saying “That His Massive Tax Cut Is Actually Going To Mean More Tax Revenue For The Government—That Two Minus One Will Equal Four.” In a Vox blog, Ezra Klein wrote, “On Tuesday, Marco Rubio told CNBC’s John Harwood that his massive tax cuts — which estimates have found would blow a roughly $4 trillion to $5 trillion hole in the deficit — creates a surplus ‘within the 10-year window.’It is worth slowing down to make clear exactly what Rubio said there. Rubio’s plan cuts corporate taxes, capital gains taxes, taxes on the rich, taxes on the middle class — it cuts taxes on everyone. The cuts are so large that the New York Times called it ‘the puppies and rainbows plan.’ And what Rubio is saying is that his massive tax cut is actually going to mean more tax revenue for the government — that two minus one will equal four. Harwood seemed shocked. ‘Wait,’ he interrupted, ‘your plan creates a surplus because of the dynamic effect?’ ‘Absolutely,’ Rubio replied.” [Vox, 10/6/15]

Vox: “Rubio’s Assurance Will, To Most Tax Analysts, Sound Like Nonsense. And It Is Nonsense.”  In a Vox blog, Ezra Klein wrote, “Rubio’s assurance will, to most tax analysts, sound like nonsense. And it is nonsense. A plan that massively cuts taxes isn’t going to lead to budget surpluses. But it’s nonsense that has been validated by an important conservative tax group, that shows the kind of candidate Rubio is looking to be, and that speaks to why the debate over taxes in Washington has become so dysfunctional.” [Vox, 10/6/15]

Vox: “Rubio’s Strategy Is Reminiscent Of George W. Bush’s.  He’s Proposing Massive Tax Cuts With No Real Way To Pay For Them […]” In a Vox blog, Ezra Klein wrote, “Rubio’s strategy is reminiscent of George W. Bush’s. He’s proposing massive tax cuts with no real way to pay for them, and he’s suggesting he won’t really need a way to pay for them because they’ll unleash so much economic growth they’ll eventually just pay for themselves. While Rubio gives some lip service to deficit reduction — he later tells Harwood that balancing the budget will require entitlement reform, not just tax reform — he clearly cares a lot more about the tax cuts than about the deficit reduction, just as Bush did.” [Vox, 10/6/15]

Bush On Taxes

Wall Street Journal: Top 1% Are Biggest Winners in Jeb Bush’s Tax Plan [Wall Street Journal, 9/10/15]

Tax Foundation Analysis: “The Biggest Percentage Increases In After-Tax Income Under Mr. Bush’s Tax Plan Would Go To The Top 1% Of Earners, People Making More Than About $406,000.” According to the Wall Street Journal, “Jeb Bush has been highlighting the benefits of his new tax plan for the middle class, which in many cases are considerable. But by some measures the biggest winners would be – well, winners. A new analysis by the business-backed Tax Foundation shows that the biggest percentage increases in after-tax income under Mr. Bush’s tax plan would go to the top 1% of earners, people making more than about $406,000. They would see their after-tax incomes increase on average by 11.6%, according to the analysis. That’s the biggest change for any income group.” [Wall Street Journal, 9/10/15]

Tax Foundation Analysis: “The Benefits To The Top 1% Would Be Even Higher When The Full Economic Impacts Of The Change Are Considered.” According to the Wall Street Journal, “The average for all income levels would be a 3.3% increase in income. The second-biggest beneficiaries would be folks in the top 10%, those making more than about $117,000. Their incomes would go up by 4.7%. The benefits to the top 1% would be even higher when the full economic impacts of the change are considered, according to the Tax Foundation analysis.” [Wall Street Journal, 9/10/15]

Washington Post: Under Jeb Bush’s Tax Plan, He Would Have Saved About $800,000 In 2013. According to the Washington Post, “As others have pointed out, Jeb Bush’s tax plan axes taxes for pretty much everyone, but especially for really, really rich people. Including, coincidentally, Jeb Bush. The Republican presidential candidate would make out like a bandit under his own plan. According to my quick-and-dirty, back-of-the-envelope calculations based on Bush’s 2013 tax return, his liability for that year would have fallen by about $800,000, or about a quarter of what he paid Uncle Sam.” [Washington Post, 9/10/15]

New York Magazine: “His Elimination Of The Estate Tax And Reductions In The Top Tax Rate Would Furnish The Rich With A Large Tax Cut. A Plan To Cut Taxes For The Rich Is Not A Departure From Long-Held Tenets Of Conservative Tax Policy. It Is Exactly That Policy.” According to New York Magazine, “And again, as a matter of simple math, even if Bush eliminated every possible deduction for the rich, his elimination of the estate tax and reductions in the top tax rate would furnish the rich with a large tax cut. A plan to cut taxes for the rich is not a departure from long-held tenets of conservative tax policy. It is exactly that policy. Which is why Bush has won the favor of the very people who have designed those policies in the past.” [New York Magazine, 9/9/15]

Huffington Post: “Jeb Bush Would Also Give Wealthy Americans A Massive Tax Break By Slashing Their Regular Income Tax Rate, And Grant Wall Streeters And Others Who Make Their Money On Securities A Separate Boon By Cutting The Capital Gains Tax Rate.” According to the Huffington Post, “But Jeb Bush would also give wealthy Americans a massive tax break by slashing their regular income tax rate, and grant Wall Streeters and others who make their money on securities a separate boon by cutting the capital gains tax rate — which applies to profits from stocks, bonds and real estate. About half of all capital gains flow to the top 0.1 percent of households, according to The Washington Post. Bush proposes cutting the capital gains rate for the wealthiest Americans from 23.8 percent to 20 percent. Even with the massive cut to the top income tax rate, the top capital gains rate would remain lower — a scenario that would continue to favor money earned from securities trading over traditional wages.” [Huffington Post, 9/9/15]

NPR: “Bush Would Eliminate The State And Local Income Tax Deduction, Which Overwhelmingly Benefits Higher Earners, And Cap The Amount Of Deductions A Filer Can Take, Which Also Would Affect Higher Earners More.” According to NPR, “But then, the plan would also eliminate some deductions and cap the amount that people can deduct, which would offset some of those rate reductions. For example, Bush would eliminate the state and local income tax deduction, which overwhelmingly benefits higher earners, and cap the amount of deductions a filer can take, which also would affect higher earners more.” [NPR,9/9/15]

New York Times: Jeb Bush’s Tax Plan Looks To Cut Loopholes For Wealthy [New York Times, 9/9/15]

FiveThirtyEight: “Despite The Lack Of Details, It’s Virtually Certain That Bush’s Proposals Would Result In Lower Taxes For Top Earners.” According to FiveThirtyEight, “Still, there are a few things that do seem clear about Bush’s plan: It would cut taxes for the rich: Despite the lack of details, it’s virtually certain that Bush’s proposals would result in lower taxes for top earners. Specifically, Bush wants to cut the tax rate on individuals earning more than about $190,000 and married couples earning more than about $230,000, based on the current earnings thresholds. (In all, he would reduce the number of brackets to three from seven, but it isn’t clear what the thresholds would be for each tier.) Bush would also eliminate the alternative minimum tax, which effectively limits how much high earners can lower their taxes through deductions and exemptions. And he would eliminate the estate tax — what Republicans call the ‘death tax’ — which imposes a tax on large inheritances. Bush would offset those cuts to some degree by capping tax deductions, which disproportionately benefit higher earners. And he would apparently end — or at least limit — the so-called carried-interest loophole, which allows investment managers and some other wealthy Americans to treat some of their earnings as capital gains, which are taxed at a lower rate than ordinary income. The carried-interest change, in particular, could result in a higher tax burden for some financial professionals. But for the doctors, lawyers and corporate executives who make up the vast majority of top earners, Bush’s plan would almost certainly result in a sizable tax cut.” [FiveThirtyEight, 9/9/15]

Jeb Bush: “Of Course, Tax Cuts For Everybody Is Going To Generate More For People That Are Paying A Lot More. I Mean That’s Just The Way It Is.” According to Politico, “The wealthiest Americans would receive sharply higher tax breaks under Jeb Bush’s tax proposal, the former Florida governor says, because they pay a disproportionate share of taxes in the first place. ‘The simple fact is 1 percent of people pay 40 percent of all the taxes,’ Bush said on ‘Fox News Sunday.’ ‘Of course, tax cuts for everybody is going to generate more for people that are paying a lot more. I mean that’s just the way it is.’” [Politico, 9/27/15]

Cruz On Taxes

Fair Tax

Cruz Co-Sponsored A Bill That Would Have Established The Fair Tax. According to the Dallas Morning News, “Two weeks after taking office, he signed on as a co-sponsor of a bill authored by Sen. Saxby Chambliss, R-Ga., that would do just that. The Chambliss bill would replace the current tax code with a 23 percent national sales tax. Dubbed the FairTax by backers, the plan would repeal federal taxes on income, employment, estates and gifts. States would collect the national levy, requiring only a small Treasury Department bureau to process and audit payments; the IRS would be shuttered in a few years. FairTax advocates usually pitch the plan as a way to eliminate the income tax. Dismantling the IRS is a bonus.” [Dallas Morning News, 6/9/13]

Cruz Supported The Fair Tax. According to the Texas Tribune, “Yet while Cruz has called for converting the country’s progressive income tax system to a flat tax, his office confirmed that the Fair Tax is his long-term goal. ‘The senator supports a Fair Tax, ultimately,’ spokeswoman Catherine Frazier said. ‘However, the most immediate, effective way to implement comprehensive tax reform is to pass a simple flat tax — so simple that Americans can file on a postcard. This should be the starting point for reform, and once it’s in place we should pursue a Fair Tax.’” [Texas Tribune, 2/8/15]

Flat Tax

Cruz Said His Leadership Would Mean A Flat Tax And The End Of The IRS. According to KCRG, “NEAR DURANGO — You could barely move inside the event hall at Park Farm Winery Wednesday evening. People were standing inches apart to get a glimpse of GOP presidential hopeful Sen. Ted Cruz (R TX). In his first day giving stump speeches as a declared candidate, the senator told the packed house what his leadership would mean: more quality job growth, a flat tax and the end of the Internal Revenue Service.” [KCRG, 4/1/15]

Cruz Said He Wanted A Flat Tax Rate And To Get Rid Of The IRS But Moving To A Flat Tax Rate Could Raise The Income Taxes Of Many Low-Income Americans. According to CNN Money, “Cruz wants a flat tax system where all taxpayers pay the same income tax rate. He also wants to get rid of the IRS. ‘Imagine a simple flat tax. … Imagine abolishing the IRS,’ Cruz said Monday when he announced his candidacy at Liberty University. Many of his Republican predecessors have called for a flat tax system in past elections without any success. His plans aren’t detailed enough yet to really assess what their impact would be on the economy or government revenues. BUT: While Cruz talks about wanting to help America’s most needy, there are concerns that a flat tax could hurt the poor the most. Under the current tax system, many low income Americans don’t pay much, if anything, in federal income taxes. Moving to a flat tax could mean their income taxes would rise.” [CNN Money, 3/23/15]

Cruz: “Moving Towards A Simple Flat Tax Would Treat All Americans More Fairly And End The Massive Time And Costs Wasted In Dealing With The IRS; We Should Let Taxes Become So Simple That They Could Be Filled Out On A Postcard.” In a USA Today op-ed, Cruz wrote, “Sixth, pass fundamental tax reform, making taxes flatter, simpler, and fairer. Moving towards a simple flat tax would treat all Americans more fairly and end the massive time and costs wasted in dealing with the IRS; we should let taxes become so simple that they could be filled out on a postcard. Ultimately, with a Republican president, we should abolish the IRS and end its abuse of power and violation of Americans’ constitutional rights.” [USA Today – Ted Cruz Op-Ed, 10/19/14]

Cruz: “The Simplest Road To Tax Reform Is To Abolish The IRS And Move To Simple Flat Tax.” According to Newsmax, “To achieve economic growth it is necessary to facilitate tax and regulatory reform. ‘The simplest road to tax reform is to abolish the IRS and move to simple flat tax,’ said Cruz.” [Newsmax, 7/20/14]

Cruz “Generally Promotes” A Flat Tax.  According to the Dallas Morning News, “And since taking office five months ago, Cruz has embraced both a national sales tax and a simplified income tax — competing ideas for replacing the current tax code. Each requires enforcement of some sort, especially the flat tax Cruz generally promotes, because taxpayers would self-report earnings, major deductions and how much they owe.” [Dallas Morning News, 6/9/13]

ATR Pledge

Cruz And Rand Paul Were The First Two 2016 Republican Presidential Candidates To Sign Grover Norquist’s Taxpayer Protection Pledge To Oppose Or Veto Any Proposal To Raise Taxes If They Win. According to Newsmax, “Sens. Rand Paul and Ted Cruz are the first two 2016 Republican presidential candidates to sign a pledge promising to oppose or veto any proposal to raise taxes if they win the White House.” [Newsmax, 4/24/15]

Cruz Signed The Americans For Tax Reform Taxpayer Protection Pledge. According to Americans For Tax Reform, “Ex-State Solicitor General Ted Cruz has signed the Taxpayer Protection Pledge in his race for Texas’s U.S. Senate seat. The Pledge, sponsored by Americans for Tax Reform (ATR), commits signers to ‘oppose any and all efforts to increase the marginal income tax rates for individuals and/or businesses … and oppose any net reduction or elimination of deductions and credits, unless matched dollar for dollar by further reducing tax rates.’” [Americans For Tax Reform, 12/1/11]

Fiorina on Taxes

Fiorina, 2015: “Take A 70,000 Page Tax Code And Make It Three Pages.” According to RealClearPolitics, while appearing on Fox News, Carly Fiorina said, “First, we have to remember what the engine of economic growth is in this nation. You know what it is? Small businesses. Family-owned businesses. Community-based businesses. I started out as a nine-person real estate firm typing and filing. That’s how most people start. Two-thirds of misses are supported by small businesses. We’re crushing them. That’s why we have to roll back this regulatory burden. Take a 70,000 page tax code and make it three pages. Because guess what. When have a big costly complicated government. Only the big, the powerful, wealthy and well connected can deal with it. It’s called crony capitalism. It is why we just reduce the size of government. So, we have to get small businesses up and growing again. To do so, we just reduce the power, the scope, the complexity of government.” [RealClearPolitics, 8/9/15]

Fiorina Supported Lowering Taxes And Closing Loopholes, Did Not Present Detailed Plan. According to The Washington Post, “Fiorina, however, would like to reduce taxes, not raise them. Although she has not put forward a detailed tax plan, she has told Chris Wallace of Fox News that she would ‘lower every rate, close every loophole.’ She argued that loopholes benefit primarily wealthy taxpayers, so her approach would be fair to the middle class and the poor. That is, again, more or less the official line of the Republican Party on taxation.” [Washington Post, 9/17/15]

Under Fiorina, Hp Lobbied For A One Year Tax Holiday On Corporate Profits Stored Offshore

Under Fiorina, HP Lobbied For The Homeland Investment Act Of 2004, Which Led To Corporations Receiving Billions And Laying Off Up To 100,000 Jobs. According to The Daily Beast, “But a blind person could see that Fiorina was the very face of corporate greed and income inequality during her five-year tenure as CEO of Hewlett-Packard. Take, for example, the cynically named Homeland Investment Act of 2004. The bill was passed as part of the equally cynically named American Jobs Creation Act of 2004 after intense lobbying with Hewlett-Packard in the forefront. The purported aim of the legislation was to generate economic growth and therefore jobs at home by according corporations a one year ‘tax holiday’ on billions in overseas profits they had stashed offshore. The result was a $265 billion corporate giveaway. The windfall was supposed to go toward research and development, and other job-creating endeavors. Instead, almost all of it was put into stock buybacks as a way of funneling cash to stockholders, these prominently including CEOs. Never mind that the bill prohibited such buybacks. And all that talk about putting more Americans to work did not stop the corporations from cutting as many as 100,000 American jobs in the name of even greater profits. Hewlett-Packard saved more than $4.3 billion and put more than $4 billion into stock buybacks. It laid off 14,500 workers.” [Daily Beast, 9/23/15]

Kasich On Taxes

Kasich Signed Norquist Pledge

2015: Kasich Signed Americans For Tax Reform’s Taxpayer Protection Pledge. According to Americans for Tax Reform, “Governor John Kasich (R-Ohio) a candidate for the presidency of the United States, has signed the Taxpayer Protection Pledge to the American people. The pledge is a written commitment to the American people to ‘oppose and veto any and all efforts to increase taxes.’” [Americans for Tax Reform, 10/27/15]

Grover Norquist, 2015: “Governor Kasich Understands That Government Should Be Reformed So That It Takes And Spends Less Of The Taxpayers’ Money.” According to Americans for Tax Reform, “‘I commend Governor Kasich for signing the Taxpayer Protection Pledge to the hard working taxpayers of this country,’ said Grover Norquist, President of Americans for Tax Reform (ATR). ‘Governor Kasich understands that government should be reformed so that it takes and spends less of the taxpayers’ money, and will oppose tax increases that paper over and continue the failures of the past.’” [Americans for Tax Reform,10/27/15]

Kasich Presidential Budget/Tax Plan

Kasich On His Pledge To Balance Federal Budget, 2015: “I Don’t Think That It’s So Critical That We Have To Have Some Exact Time As To When It’s Going To Happen.”According to the Dayton Daily News, “For Kasich, it was the first time had acknowledged how difficult it would be to balance the budget while increasing spending for the U.S. military and holding the line against new federal taxes. When Kasich first began exploring a presidential campaign, he focused much of his effort on winning approval for a constitutional amendment requiring a balanced budget. ‘I don’t think that it’s so critical that we have to have some exact time as to when it’s going to happen and if I tried to give you a number I wouldn’t be telling you the truth because we haven’t worked all the numbers out,’ Kasich said. ‘But what is most important is that we get on a legitimate, realistic road map to getting there.’” [Dayton Daily News, 9/25/15]

AP On Kasich’s 2016 Budget Plan: “Kasich Advocated Tax Cuts That Would Increase The Budget Deficit Over The Early Years Of His Presidency,” Lower Top Tax Rate To 28 Percent According to the Associated Press, “Kasich advocated tax cuts that would increase the budget deficit over the early years of his presidency, according to projections his campaign shared with The Associated Press. Here’s what his advisers predict: enough economic growth from those cuts, and backed by reductions to Medicare and Medicaid and an eight-year freeze on increases in nondefense discretionary spending, to eventually offset lost tax revenue. All that would help balance the budget for the first time since Bill Clinton was president. Kasich’s tax plan would: lower the top individual tax rate from 39.6 percent to 28 percent.” [Associated Press, 10/15/15]

  • AP: Kasich’s Plan Would Lower Top Tax Rate To 28 Percent. According to the Associated Press, “Kasich’s tax plan would: lower the top individual tax rate from 39.6 percent to 28 percent.” [Associated Press, 10/15/15]
  • AP: Kasich’s Plan Would Cap Long-Term Capital Gains Tax At 15 Percent.According to the Associated Press, “Kasich’s tax plan would: […] cap the long-term capital gains tax rate at 15 percent, helping those in the highest income tax bracket.” [Associated Press, 10/15/15]
  • AP: Kasich’s Plan Would Eliminate Estate Tax. According to the Associated Press, “Kasich’s tax plan would: […] eliminate the estate tax.” [Associated Press, 10/15/15]
  • AP: Kasich’s Plan Would Lower Top Business Tax Rate To 25 Percent. According to the Associated Press, “Kasich’s tax plan would: […] lower the top business tax rates from 35 percent to 25 percent.” [Associated Press, 10/15/15]
  • AP: Kasich’s Plan Would Double R&D Tax Credit For Small Businesses.According to the Associated Press, “Kasich’s tax plan would: […] double the research and development tax credit for small businesses.” [Associated Press, 10/15/15]
  • AP: Kasich’s Plan Would Earned Income Tax Credit By 10 Percent. According to the Associated Press, “Kasich’s tax plan would: […] increase by 10 percent the earned income tax credit, which is intended to help lower-income taxpayers.” [Associated Press,10/15/15]
  • AP: Kasich “Does Propose Cuts To Medicare.” According to the Associated Press, “He does propose cuts to Medicare that would slow the growth rate of the health care program for more than 50 million elderly and disabled people.” [Associated Press,10/15/15]

Urban-Brookings Tax Policy Center Senior Fellow On Kasich’s 2016 Budget Plan: “This Looks Like A Pretty Big Tax Cut For The Top End And A Little Bit At The Bottom.”According to the Associated Press, “‘This looks like a pretty big tax cut for the top end and a little bit at the bottom,’ said Robertson Williams, a senior fellow at the Urban-Brookings Tax Policy Center. ‘There’s not much going to the middle class.’” [Associated Press, 10/15/15]

AP On Kasich’s 2016 Budget Plan: “For Now, Kasich Is Ignoring” Obamacare, Social Security. According to the Associated Press, “For now, Kasich is ignoring two major programs, with specific ideas to come later on President Obama’s health care law and Social Security.” [Associated Press, 10/15/15]

Kasich Opposed Income Tax As A Concept

Kasich, 2008: “Income Tax Over Time Must Be Abolished.” According to The Columbus Dispatch, “Partisan red meat was plentiful at the Ohio delegation’s Wednesday breakfast sponsored by former U.S. Rep. John Kasich of Westerville. Kasich, contemplating a 2010 gubernatorial bid, harshly criticized Democratic Gov. Ted Strickland and said anew that the Ohio ‘income tax over time must be abolished.’” [Columbus Dispatch, 9/5/08]

  • Columbus Dispatch: “The 5.5 Percent State Sales Tax Would Have To Leap To Around 12 Percent To Raise A Similar Amount” As Income Tax. According to The Columbus Dispatch, “Replacing the $9.1 billion generated by the income tax would not be easy. The 5.5 percent state sales tax would have to leap to around 12 percent to raise a similar amount. No other tax raises more than $1.1 billion.” [Columbus Dispatch, 9/5/08]

Columbus Dispatch, 2015: Kasich “Wants To Shift Ohio From Income Taxes To Consumption Taxes.” According to the Columbus Dispatch, “Kasich has stressed that he wants to shift Ohio from income taxes to consumption taxes. As part of his two-year budget, he has proposed a $5.7 billion cut in income taxes over two years, coupled with $5.2 billion in tax increases on sales, commercial activity, tobacco and fracking. Business groups have been highly critical of Kasich’s proposal, generally arguing that the harm of the tax increases and sales-tax expansion outweighs the benefits of a 23 percent income-tax cut, plus a $700 million cut under which small-business owners, investors and sole proprietors would pay no income tax if they reap less than $2 million annually in gross receipts.” [Columbus Dispatch, 2/26/15]

Kasich, 2015: Ohio Needs To “Fundamentally” Change Its Tax System. According to the Toledo Blade, “Mr. Kasich promises that the total package would lead to a net tax cut of $523 million over two years. ‘That’s the easy part of it …,’ he said. ‘That $500 million gets paid for by the savings that we’ve been able to generate. … I believe we can achieve even more if we start fundamentally changing the way that Ohio’s tax system works so that taxes have less of a drag on the private economy.’ He urged legislators, most from his party, to be more aggressive in shifting the state toward consumption-based taxes to enact deeper income tax cuts for individuals and small businesses.” [Toledo Blade, 2/27/15]

Kasich, 2015: Ohio Has “The Largest Tax Cuts In America. We’re Leaving No One Out.”According to Politico, “While other Republicans seeking nominations are proposing budgets with steep cuts to close deep budget deficits, Kasich notes that he has a surplus and that he’s pushing to get rid of the income tax as part of a huge tax reform effort. ‘The Ohio story is unique today in America,’ he said. ‘We’re running surpluses, are structurally balanced, our unemployment is at more than a 10-year low. The largest tax cuts in America. We’re leaving no one out. Everybody can be included. It’s a really great story, and people should hear it. They should come to understand how we got this done.’” [Politico, 3/3/15]

2015: Grover Norquist “Very Happy” With Kasich Tax Plan. According to the Northeast Ohio Media Group, “In an interview, Norquist, who heads the Washington, D.C.-based Americans for Tax Reform, said his group is ‘very happy’ with Kasich’s proposed income-tax reduction. But, he added, the governor’s tax plan would be even stronger if he sought to pay for the income-tax cuts by slashing spending instead of raising other taxes. Asked if he thought Ohio could cover income-tax cuts only by cutting spending, Norquist noted that nine other states already have no income tax at all. ‘I’m sorry, but Ohio’s not more difficult to organize than Florida, Texas … [or] Washington state,’ he said, listing some of the states that impose no income tax.” [Northeast Ohio Media Group, 2/25/15]

Kasich Supported Principals Of Flat Tax, Opposed Proposed Flat Taxes

Opposed Flat Tax

Kasich, 2015: Tax Plan With 10 Percent Flat Tax Would “Drive Up The Deficit In This Country By Trillions Of Dollars That My Daughters Will Spend The Rest Of Their Lives Having To Pay Off.” According to Business Insider, “He [Kasich] continued: ‘We got one person saying we ought to have a 10% flat tax that will drive up the deficit in this country by trillions of dollars that my daughters will spend the rest of their lives having to pay off. ‘And I say to them is: ‘Why don’t we have no taxes? Just get rid of them all! And a chicken in every pot on top of it.’’ That entire broadside was apparently directed at Carson, who has supported having health-savings accounts eventually replacing Medicare. Carson has also advocated replacing the current structure with a flat tax, citing a 10% tithing rate with biblical origins as an example.” [Business Insider, 10/27/15]

Supported Flat Tax Principals

June 2015: Kasich “Talking About A ‘Flatter’ And ‘Fairer’ Code That Might Reduce The Seven Current Income-Tax Brackets Into As Few As One.” According to the Columbus Dispatch, “As Gov. John Kasich considers running for president, he also is flirting with another idea: backing a variation of magazine publisher Steve Forbes’ plan to overhaul the federal tax code while giving taxpayers a unique choice. With Republican presidential candidates ranging from Florida Sen. Marco Rubio to former Arkansas Gov. Mike Huckabee unveiling major plans to revise the tax code, Kasich is talking about a ‘flatter’ and ‘fairer’ code that might reduce the seven current income-tax brackets into as few as one. In particular, Kasich said he has been working with Forbes, a fellow Republican, on ‘an intriguing idea’ to allow Americans to stick with the current tax system or embrace a revolutionary new code after determining which plan would save them more money. ‘I don’t want to get into details of tax plans nationally,’ Kasich said last month in South Carolina. ‘I’ll have more stuff when I’m ready to do that. It’s too early.” [Columbus Dispatch, 6/8/15] 

March 2015: Kasich Talked About Flat Taxes With New Hampshire Locals. According to the Washington Times, “The locals liked what they saw, according to several press reports. Mr. Kasich talked about balancing the budget, flat taxes, a sound economy and other fare that might appeal to a Yankee audience. He also recalled his visits to the Granite State during 1999, during another presidential bid.” [Washington Times, 3/24/15]

May 2015: Kasich “In Talks With Publisher And Conservative Activist Steve Forbes To Develop A Flat Tax Reform Proposal.” According to the Weekly Standard, “Ohio governor John Kasich, who may run for the Republican nomination for president, said he is in talks with publisher and conservative activist Steve Forbes to develop a flat tax reform proposal. ‘I’m in conversation now with Steve Forbes on the flat tax,’ Kasich said Friday afternoon at a lunch sponsored by the Christian Science Monitor.” [Weekly Standard, 5/1/15] 

Kasich, May 2015: “The Beauty Of [Steve Forbes’] Plan Is This. You Can Have The Plan I’m Suggesting, Which Is Flat, Or You Can Take The Traditional Tax.” According to the Weekly Standard, “While he cautioned he isn’t ready to endorse the proposal yet, Kasich said he is ‘fascinated’ by the idea of a ‘flatter, simpler’ tax. ‘The beauty of his plan is this,’ he said. ‘You can have the plan I’m suggesting, which is flat, or you can take the traditional tax.’ ‘If you don’t like it, you can keep the current system,’ Kasich said, adding that he also thinks the corporate tax rate is ‘too high.’” [Weekly Standard, 5/1/15]

USA Today, April 2015: Kasich “Wants To Overhaul The Tax Code — Perhaps With A Flat Tax.” According to USA Today, “‘I’m really amazed to be here,’ Kasich said at a press conference Thursday after making remarks on Ohio’s economic recovery at a forum sponsored by The Atlantic. […] He said he wants to overhaul the tax code — perhaps with a flat tax — but emphasized that he hadn’t endorsed a detailed proposal yet.” [USA Today, 4/23/15]

Steve Forbes On Kasich’s Possible Flat Tax Plan, 2015: “They Understand The Concept, They’ve Looked At Some Of The Work We’ve Done In The Past And They’re Fashioning Their Own Plans.” According to the Washington Examiner, “And as another face in the growing crowd of Republican presidential hopefuls, Kasich is floating a flat tax. Lest anyone doubt his sincerity, Kasich has touted his discussions with Steve Forbes, the wealthy publishing executive who has championed the flat tax for decades. Forbes, a former presidential candidate himself, told the Washington Examiner he is interested to see the final details of the plan that Kasich’s team produces. ‘They understand the concept, they’ve looked at some of the work we’ve done in the past and they’re fashioning their own plans, so [I’m] delighted that he’s doing it and hope more follow his good example,’ Forbes said. ‘At least half a dozen [presidential candidates] out there are either working on something or have expressed interest in the concept, so I think this is the way we’ll get not only in the discussion in the public square, but also get the mandate for it next year. That’s the only way you’re going to get it to happen.’” [Washington Examiner, 6/15/15]

  • 2015: Kasich Expressed Concerns About Flat Tax’s Dynamic Scoring, Short Term Revenue Loss. According to the Washington Examiner, “He also appears to have found some elements of the flat tax difficult to swallow. At a lunch sponsored by the Christian Science Monitor last month, Kasich openly expressed his lingering doubts about how to measure a flat tax’s economic impact. ‘I’ve been a little bit concerned about the issue of dynamic scoring,’ Kasich said. ‘I’ve talked to [Forbes] about it, and he said, ‘Look John, if we open up the floodgates we think we will have significant growth in the early years and in the later years it returns to mean.’ A pretty good answer to me.’ In other words, even if the federal government loses revenue in the near-term after implementing a flat tax, such a plan would spur economic growth that would provide revenue over the long term that would be comparable to the amount brought in under the existing tax code.’” [Washington Examiner, 6/15/15]

June 2015: Senate Budget Proposal Included New Flat Tax For Small Businesses With Incomes Above $250,000. According to WVXU, “And even though the Senate plan doesn’t include the 23 percent income tax cut proposed by Kasich, Faber says the proposed budget has many provisions to ease burdens on Ohio’s taxpayers. ‘Our budget reduces Ohio’s income tax rate by 6.3 percent across the board, saving taxpayers $1.26 billion over the next two years,’ Faber said. ‘It eliminates the entire state tax burden on small businesses for all income up to the first $250,000 and then creates an innovative new flat tax for small businesses above that income tax level.’” [WVXU, 6/9/15]

Kasich’s 2016 Budget Would Have Drastically Cut Income Taxes, Raised Other Taxes

2014: Kasich Proposed Reducing 23 Percent Income Tax Cut Over Two Years

Kasich Budget Proposal Called For 23% Income Tax Cut Over Two Years, With A 15% Income Tax Cut In 2015. According to the Cleveland Plain Dealer, “Gov. John Kasich’s budget proposal, unveiled Monday, calls for an across-the-board, 23-percent personal income-tax cut during the next two years, with an immediate 15 percent cut for this year. The governor’s two-year budget plan would also increase the personal income-tax exemption for lower- and middle-class Ohioans. The proposal is the governor’s latest effort toward eliminating the state income tax.” [Cleveland Plain Dealer, 2/2/15]

  • Kasich Budget Plan Would Make Maximum Income Tax 4.1%. According to the Cleveland Plain Dealer, “During Kasich’s term, the state’s top income tax rate has already fallen from 5.9 percent to about 5.3 percent. Under Kasich’s plan, which now goes before state lawmakers, Ohio’s personal income-tax rate would be reduced to a maximum 4.1 percent.” [Cleveland Plain Dealer, 2/2/15]
  • Personal Exemption For People Making Up To $40,000 Would Almost Double, And Higher Income Exception Would Also Rise Significantly. According to the Cleveland Plain Dealer, “The personal exemption for residents making up to $40,000 per year would rise from $2,200 in 2014 to $4,000 this year. Ohioans earning between $40,000 and $80,000 would receive a $2,850 exemption in 2015, up from $1,950 last year.” [Cleveland Plain Dealer, 2/2/15]
  • Personal Exemption Would Mean Extra $2-$3 A Week For Many People.According to the Cleveland Plain Dealer, “Such increases in the personal exemption would mean an extra $2 to $3 per week for many Ohio families (find out how much you would save with our calculator).” [Cleveland Plain Dealer, 2/2/15]

Under Kasich, Income Tax Had Already Fallen From 5.9% To 5.3%. According to the Cleveland Plain Dealer, “During Kasich’s term, the state’s top income tax rate has already fallen from 5.9 percent to about 5.3 percent. Under Kasich’s plan, which now goes before state lawmakers, Ohio’s personal income-tax rate would be reduced to a maximum 4.1 percent.” [Cleveland Plain Dealer, 2/2/15]

Kasich Proposed Increasing Number Of Taxes To Pay For Income Tax Cut

Kasich Proposed Increasing Sales Tax

2015: Kasich’s Ohio Budget Proposal Would Increase Sales Tax To 6.25% But Lower Income Tax Rate By 23%. According to the Cincinnati Enquirer, “Under Kasich’s two-year state budget, Ohio’s 5.75 percent state sales tax would increase to 6.25 percent. That’s before any extra amount added by counties; so sales tax would increase to 7.5 percent in Hamilton County, including the upcoming county increase to pay for Union Terminal. Kasich also would apply the sales tax to more purchases and services, including cable TV, parking, consulting and public relations. In exchange, Kasich is asking the Legislature to cut all Ohioans’ income tax rates by 23 percent over the next two years, on top of a plan to eliminate income taxes for most business owners.” [Cincinnati Enquirer, 2/2/15]

Kasich Proposed Highest Cigarette Tax In Midwest

2015: Kasich Reportedly Wanted To Raise Cigarette Tax In 2016 Budget, Activists Released Report Saying State Could Raise $1.5 Billion Over Five Years With A $1 Tax Hike. According to the Toledo Blade, “In advance of Gov. John Kasich again trying to convince lawmakers to raise Ohio’s cigarette tax, anti-tobacco activists on Tuesday released a report suggesting that the state could raise $1.5 billion over five years with a $1 hike per pack. The governor has made it clear his third two-year budget proposal to be unveiled Monday will include a proposed hike, but it’s not clear how much it would be. Last year, he proposed hiking the tax 60 cents over two years to $1.85 a pack. The idea was quickly stamped out by fellow Republicans in the General Assembly. ‘Why should taxes on tobacco not be higher to pay for a reduction in the income tax?’ Mr. Kasich asked in December. ‘I’ll tell you why. Lobbyists, that’s why. … There’s no doubt in anybody’s mind who’s in medicine that if you raise the tax on cigarettes, you’ll have a healthier society.’ Mr. Kasich’s 2014 plan also would have extended the tax to cigars, electronic cigarettes, chewing tobacco, and pipe tobacco, all of which are subject to lower rates than cigarettes.” [Toledo Blade, 1/28/15]

2015: Under Kasich’s Proposed Budget Ohio Would Have Highest Cigarette Tax In Midwest, $2.25. According to the Cleveland Plain Dealer, “Ohio would have the highest cigarette tax in the Midwest under a tax plan proposed Monday by Gov. John Kasich. Kasich wants to raise the per-pack tax from $1.25 to $2.25 and increase taxes on cigars and other tobacco processes to the same level as cigarette taxes — from 17 percent of wholesale cost to 60 percent. Anti-smoking advocates have lobbied Kasich for the $1-per-pack increase and tobacco tax equalization, arguing that higher taxes would both reduce the number of Ohio smokers and bring in revenue that could fund prevention and cessation programs. The increases would generate an estimated $991 million over two years — $528 million in 2016 and $463 million in 2017 — to offset income tax cuts. Last year, lawmakers scrapped Kasich’s 60-cent per-pack cigarette increase.” [Cleveland Plain Dealer, 1/2/15]

Kasich Proposed Taxing Previously Exempt Services, Adding Commerical Activity Tax

Kasich Budget Proposal Would Tax Previously Exempt Services Like Cable TV, Lobbying, PR, Debt Collection, Parking, And Also Increase The Commercial Activity Tax.According to the Toledo Blade, “Gov. John Kasich’s $72 billion, two-year budget proposal unveiled on Monday holds hefty income tax cuts for small businesses and individuals that would be partly offset by higher taxes on sales, tobacco, drilling, and larger businesses. […] The tax base would expand to include such previously exempt services as cable TV, lobbying, public relations, debt collection, and parking, a much narrower list than he unsuccessfully pushed two years ago. That increase would accompany a 0.25 percentage point increase in the Lucas County sales tax to 7.25 cents, after an increase was approved by the Lucas County commissioners. That takes effect in April. […] The commercial activity tax, paid by larger businesses, would see its first increase since it was created, from 0.26 percent to 0.32 percent of gross receipts.” [Toledo Blade, 2/3/15]

Kasich Proposed Nearly Eliminating Income Taxes For Business Owners

2015: Kasich Wanted To Eliminate 98 Percent Of Income Taxes For Business Owners Who Report Profits As Personal Income. According to the Cincinnati Enquirer, “Ohio Gov. John Kasich wants to eliminate state income tax for about 1 million business owners as part of the two-year state budget he plans to unveil Monday. He also plans to increase the personal exemption Ohioans can claim on their state income tax return if they earn $80,000 or less each year. Ohio would be able to afford the tax breaks in part because of $500 million in planned surplus tax revenue, boosted by an improved economy, Kasich aides said. […] Kasich’s plan would wipe out income taxes for 98 percent of business owners who report their profits as their personal income – known as sole proprietors or ‘pass-through entities.’ They could skip their income taxes if their business has annual sales of up to $2 million.” [Cincinnati Enquirer,1/29/15]

Kasich’s Proposed Tax Increases Would Pay For Income Tax Cut

2015: Kasich Wanted To Use Revenue From Tax Hike To Fund Income Tax Cuts, Activists Wanted At Least 12% To Go To Smoking Prevention Programs. According to the Toledo Blade, “While Mr. Kasich has wanted to use revenue from the cigarette tax to help fund income tax cuts, the anti-tobacco activists want to see at least 12 percent put into smoking prevention and cessation programs for which the state was once a national leader.” [Toledo Blade, 1/28/15]

2015: Income-Tax Cuts Were Paid For With Sales Tax, Oil And Gas Severance, Commercial Activity Tax, And Tobacco Tax. According to the Cleveland Plain Dealer, “The income-tax cuts would be paid for with increases in the state’s sales tax, oil and gas severance tax, commercial activity tax, and tobacco tax. Unveiling his budget plan to reporters Monday, Kasich said lowering the income-tax rate would make the state more attractive economically.” [Cleveland Plain Dealer, 2/2/15]

Kasich’s Plan Would Only Benefit Top 40 Percent, Raise Taxes For Bottom 60 Percent

2015: Analysis Found That Kasich’s Proposed Tax Plain Would Raise Taxes on Bottom 60 Percent Of Earners In Ohio. According to the Columbus Dispatch, “Only the top 40 percent of Ohio income-earners would get a tax break as a group under Gov. John Kasich’s two-year budget plan to cut state income tax by $5.7 billion and raise other types of taxes by $5.2 billion, a new analysis says. That means the bottom 60 percent as a group – Ohioans making under $58,000 annually — would pay more in state and local taxes. Some of that gap is attributed to the governor’s plan to impose a $1-a-pack increase on the state cigarette tax. But even removing that from the table, taxpayers in the bottom 40 percent – $37,000 a year or less — still would see no tax benefits as a whole from Kasich’s proposal, according to an analysis by the Institute on Taxation and Economic Policy, a Washington D.C.-based research group that uses a model of the state tax system, for the liberal group Policy Matters Ohio. The top 1 percent of Ohio’s earners – those making more than $388,000 a year — would receive an average of $11,906 in tax cuts, the analysis found. ‘Income-tax cuts will flow heavily to the most affluent, further increasing inequality in Ohio while doing little for our economy. By contrast, the increase in the sales-tax rate and most of the other proposed tax increases will fall more heavily on lower- and middle-income Ohioans,’ the analysis found.” [Columbus Dispatch, 2/10/15]

Ohio Legislature Rejected Most Of Kasich’s Tax Plan, Reduced His Proposed Income Tax Cut

Columbus Dispatch: “Much Of Gov. John Kasich’s Tax Package, Particularly Increases In The Sales, Fracking And Commercial-Activities Taxes, Will Be Scrapped.” According to the Columbus Dispatch, “Ohio House Republicans are expected to approve an income-tax cut, but much of Gov. John Kasich’s tax package, particularly increases in the sales, fracking and commercial-activities taxes, will be scrapped, sources said yesterday. Those are some of the many changes to the two-year, $72.3 billion budget that House Republicans are expected to roll out today. They also will alter Kasich’s proposed school-funding plan to push more money to low-wealth, rural districts.” [Columbus Dispatch, 4/14/15]

  • Ohio House Republicans Expected To Do Away With All Of Kasich’s Tax Increases. According to the Columbus Dispatch, “Kasich has argued that he wants to make the state more competitive by shifting from income taxes to consumption taxes. His proposal included a sales-tax increase from 5.75 percent to 6.25 percent, a more than $900 million expansion of the sales tax to new services, a nearly $900 million increase in the commercial-activities tax, and a severance-tax hike on fracking.” [Columbus Dispatch,4/14/15]

2015: Ohio Legislature’s Budget Reduced Kasich’s Proposed 23 Percent Income Tax Cut To 6.3 Percent. According to the Associated Press, “Kasich had wanted to use part of the money from the tax increases to cut the state income-tax rate by 23 percent over the next two years, to a top rate of 4.1 percent by 2017. The measure instead provides a 6.3 percent income tax cut beginning in tax year 2015. That would lower the top rate to just below 5 percent.” [Associated Press, 6/24/15]

2015: Ohio Legislature’s Budget Included 35-Cent Cigarette Tax Hike. Lower Than Kasich’s $1 Proposal. According to the Northeast Ohio Media Group, “Ohio lawmakers’ final compromise budget plan includes a small-business income-tax cut and a increase on cigarettes, a legislative conference committee revealed late Wednesday night. […]The cigarette tax hike was set at 35 cents per pack. The Senate version had a 40-cent increase, while Gov. John Kasich had proposed a $1 per pack increase.” [Northeast Ohio Media Group, 6/24/15]

2015: Ohio Legislature’s Budget Dropped Kasich’s Proposal To Tax Social Security Benefits For People With Income Greater Than $100,000. According to the Northeast Ohio Media Group, “Ohio lawmakers’ final compromise budget plan includes a small-business income-tax cut and a increase on cigarettes, a legislative conference committee revealed late Wednesday night. […]Scrap a House-backed proposal from Gov. John Kasich to tax Social Security benefits for people with total income of more than $100,000. Social Security taxed at the federal level currently is not taxed in Ohio.” [Northeast Ohio Media Group, 6/24/15]

Local Media Believed Kasich’s Tax Cut Proposals Were Misguided, Part Of Presidential Ambitions

“Kasich Deserves Bragging Rights For Fiscal Stewardship But His Income-Tax Plan Is Misguided: Editorial.”  [Northeast Ohio Media Group, 2/27/15]

NEOMG Editorial Headline: “Gov. John Kasich Can’t Let Presidential Ambitions Cloud The Reality That State Budgets Require Consensus More Than Fiat.” [Northeast Ohio Media Group, 5/9/15]

  • NEOMG Editorial: “A Juicy Package Of Income-Tax Cuts At Home Would Look Far Better On The Campaign Trail Than A Defiant General Assembly Controlled By His Own Party.”In an editorial, the Northeast Ohio Media Group wrote, “Gone are Kasich’s efforts to boost Ohio’s tobacco, oil and gas severance taxes and the state sales tax — increases the governor wanted, in part, to underwrite his hefty (and unneeded) income-tax cuts for Ohioans. […] Yet one can’t help but believe that a lot of the governor’s pique at the House GOP rebellion is also because Kasich has his eye on the presidency. A juicy package of income-tax cuts at home would look far better on the campaign trail than a defiant General Assembly controlled by his own party.” [Northeast Ohio Media Group,5/9/15] 

Crain’s Cleveland, 2015: “Gov. John Kasich Is Playing The Tax-Shifting Shell Game Once Again” And “Many Of The Budget Decisions Billed As Business Friendly Actually Hurt Those Doing And Wanting To Do Business In The Buckeye State.” According to an editorial by Crain’s Cleveland Business, “Step right up, folks, because Gov. John Kasich is playing the tax-shifting shell game once again. His ‘Blueprint for Ohio,’ as he’s calling his two-year operating budget proposal, contains more of what we’ve come to expect. Hiking taxes here so you can trim them there is no way to balance a state’s budget. This latest fiscal sleight of hand would increase taxes by $5.2 billion to compensate for the $5.9 billion in income-tax cuts he’s proposing. It would result in a net tax cut of $523 million. Don’t be fooled, though, because many of the so-called winners in Kasich’s budget will still end up losing. Many of the budget decisions billed as business friendly actually hurt those doing and wanting to do business in the Buckeye State. And many of those same decisions that supposedly will benefit the lower- and middle-classes will likely do more harm than good.” [Editorial – Crain’s Cleveland Business, 2/8/15]

Crain’s Cleveland, 2015: Kasich Move To Regressive Tax System “Means Everyone Pays The Same Amount Regardless Of How Much Money They Make.” According to an editorial by Crain’s Cleveland Business, “It also continues Kasich’s push to move the state’s tax system toward being consumption-based rather than income-based. Unfortunately, this shift to a more regressive form of taxation means everyone pays the same amount regardless of how much money they make.” [Editorial – Crain’s Cleveland Business, 2/8/15]

Results Hurt Small Business

Heartland Institute On Kasich’s 2015 Budget: Tax Burden Shifted To “Some Small Business Owners,” “Government Spending Will Increase. According to the Heartland Institute, “The new budget for the State of Ohio for fiscal years 2016 and 2017 was signed into law by Gov. John Kasich (R), reducing the income tax rates on individuals by 6.3 percent across all income tax brackets and shifting the tax burden by raising consumption taxes, sin taxes, and business taxes for some small business owners. Government spending will increase by 11 percent, compared to the previous biennial budget, most of which comes from Kasich’s continued support for increasing entitlement spending, such as Medicaid.” [Heartland Institute,7/27/15]

Federal Gas Tax

Kasich Op-Ed, 2015: “Tax Hikes Wouldn’t Be Necessary If Washington Made Some Common-Sense Reforms.” In an op-ed for TIME Magazine, John Kasich wrote, “In a country that grows things and makes things we must be able to move things — quickly, cheaply, and safely — if we want to have the jobs-friendly climate America needs. Unfortunately, our country’s infrastructure, from the northeast rail corridor to our interstates to our local roads, is starting to crumble beneath our wheels and Washington seems powerless to help. […] Some states are so desperate that they are taking matters into their own hands, but they lack the authority to make real progress. Six states recently increased their gas taxes to try to fund their own needs, but that only puts more pressure on consumers and job creators at a time when the economy is still trying to get going. These tax hikes wouldn’t be necessary if Washington made some common-sense reforms, like take itself out of the picture.” [TIME Magazine, 7/31/15]

Kasich Op-Ed, 2015: “Federal Bureaucrats Skim Some Off The Top” From Federal Gas Tax.  In an op-ed for TIME Magazine, John Kasich wrote, “Instead of sending our gas tax money to Washington, where federal bureaucrats skim some off the top to pay for their own agencies, Congress should dramatically cut the 18.4 cents-per-gallon federal gas tax to just a few cents per gallon — just enough to pay for interstate connectivity and other safety concerns. States would then be free to set their own gas tax rates, aligned to their own needs as identified by their own residents, communities, and leaders. [TIME Magazine, 7/31/15]

Kasich Op-Ed, 2015: “It’s Time To Get Washington Out Of The Highway Business.” In an op-ed for TIME Magazine, John Kasich wrote, “Washington doesn’t always know what is best and when it comes to infrastructure, where the money and work is all done at the state and local level anyway, it only slows things down and runs up the costs by adding an extra layer of interference. It’s time to get Washington out of the highway business so America can get moving again.” [TIME Magazine, 7/31/15]


Published: Oct 28, 2015

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