Scaling back tax exemptions can help push Ohio forward
Published 8:58 am Thursday, March 31, 2011
There’s a scandal in Ohio: The state grants $7.5 billion a year in tax exemptions, credits and deductions, and yet, they receive little, if any, scrutiny, even though some date to the 1950s, even the ‘30s.
The contrast was striking. John Kasich recently unveiled his budget plan, including spending reductions for schools, universities and local governments.
With the proposal came a second document, “The Tax Expenditure Report,” an accounting of 128 tax breaks, totaling $15 billion for the biennium.
Might the governor, or now state lawmakers, find a measure of relief in this sum for the many priorities facing the budget ax?
Unfortunately, the answer is no. The governor who trumpets change held firmly to the past, signaling business as usual in this realm. When Team Kasich talks about putting all state spending under the microscope, that evidently doesn’t include this trove of tax relief.
Yet the state Department of Taxation made the point: “Tax expenditures result in a loss of tax revenue to state government, thereby reducing the funds available for other government programs. In essence, a tax expenditure has the same fiscal impact as a direct government expenditure.” …
With that in mind, the Policy Matters Ohio analysis proposes scaling back the overall relief by 10 percent, the state recovering $1.5 billion during the biennium. That hardly is onerous. It most likely would serve Ohio well, resources available for such as items as education, so essential to a strong economy. …
Akron Beacon Journal