HAM
RADIO


OHIO 

   Northern Ohio       
 Amateur Radio Development         
P.O. BOX 271, Brunswick, OH 44212-0271     
   www.noard.com      
Rick Wells - K8SCI     PH: 330 225-7373      

HOME

CLUBS

HINTS

TV-CHNLS

LINKS

WE ARE

HUMOR

OHIO-TAXES

NOARD INC ( formerly Northern Ohio Amateur Radio Depot ) no longer 
has a retail store, and has now gone "out-of-business".
Northern Ohio Amateur Radio Operators please pass on the word to others.

ALSO SEE: Gap between rich and poor widening in troubled economy - GAP 

Our Nations Forefathers must be turning in their grave

October 8, 2004

TO:  All Ohio Legislators

The Federal Government must outright ban any and all State and Local Tax Abatements (read on).

The Federal Government must reject the Multistate Tax Commission/Streamline Sales-Tax Project (read on).

Also, the Ohio Republican Party is in the "Self-Destruct" mode and the Ohio Democrats are not offering a choice either. Ohio's General Assembly, for the last 40 years, have only widened the gap between those that have and those that don't. 

Ohio's Tax-System is in the direct opposite plan of our Nations's forefathers conception of having a land of "equal opportunity".  The only thing that appears to be of importance to Ohio's Legislators is "Power" and "Money" derived by placing lobbyist and special-interest groups ahead of a fair and equitable tax system.

The use of State/Local Tax-Abatements, in the name of "Job-Creation/Retention", is simply unfair to most other Ohio Taxpayers.  Could any Ohio Legislator, Governor, or anyone from the Ohio Department of Development, still be able to Save or Create any Ohio jobs if you were forbidden to vary the required tax-terms associated with any  project, and be forced to treat all Ohio taxpayers on a fair and equal tax basis.

Tax-Abatement also opens a major protential for unethical Campaign Contributions to State Legislators who get involved with assisting Corporations getting "Tax-Breaks".

If tax-abatements were not allowed, then the State would have to address true tax-reform in order to fairly compete with other States, and they would have to do it on an equal basis for all of their taxpayers (not just a few).

While the State of Ohio demands that the Federal Government "butt-out" of the State's right of sovereignty, the State of Ohio wants to shove down the Federal Governments throat a plan to demand that Ohio's tax laws be imposed onto other businesses operating in other States, while at the same time, demand that all Ohio's businesses be forced to become the "tax-collector" for other State Governments.  This will require all Ohio businesses to be experts, in just what is and what is not taxable, and at what rate, and be able to collect the proper amount of tax, and be able to accurately report it in a detailed report (to the State of Ohio) by total sales and tax-liability amounts for each of the 7,600 different taxing districts in the U.S.A..  This is what our tax-study experts call "simplifying" and making this more fair for all businesses.

How many Ohio businesses, who financially rely on their "out-of-state" sales, will be able to stay in business, if the State of Ohio requires them to charge and collect the use-tax of other MTC member states?  You could be putting 25,000 small Ohio retailers "out-of-business" overnight because you relied too much on sales-tax revenues to fund government services when you had no ability to police and enforce the Ohio use-tax from the Ohio consumer.

The Federal Government needs to reject the Multistate Tax Commission/Streamline Sales Tax Project, and simply tell the States that you made your bed, you sleep in it!  How can you have a so called "tax-simplification" plan that is supposed to "simplify" the sales tax system, when the first thing that is agreed to is that the individual States will still have the right to determine what is taxable, or not taxable, in their own State.  In other words, they have agreed to disagree!

While many are blaming Washington D.C. for the loss of jobs in Ohio, the real truth is with Ohio's outdated tax system, and the high-cost of labor.  No policitian is ever going to blame a Union (in fear of losing votes) in causing a company to move an operation to a lower priced labor market (even overseas).  You can also blame the consumer for not wanting to pay the higher cost associated with products manufactured by companies who pay their employees higher wages with benefits. 

You cannot blame the President or the Governor of Ohio for the loss of jobs.  Ohio's tax-system was developed by Ohio Legislators in the General Assembly.  The Federal tax-system was developed by the U.S. Congress.  President's and Governor's do not make laws, you do.  It is a total cop-out to blame the person at the top when you give them no other choice.  So while your blaming the person at the top, understand this, you had the power to change the way the Ohio's Tax-System effects all Ohio taxpayers, but chose not make it fair.  You even had the power to override any veto by the Ohio Governor if you had chose to overhaul Ohio's Tax-System (if that had been threatened), but didn't. 

But you cannot control the consumer.  The consumer has 100 percent control of where they are going to end up spending their dollars.  Consumer spending is two-thirds of this countries economy.  You have not done anything to protect the Ohio business in remaining competitive with the Ohio consumer.  You have only made them less competitive with the Ohio consumer.  This has nothing to do with Washington DC, only Columbus, Ohio.

I've noticed that there aren't any Ohio Legislative sessions planned until after the November election.  I'll bet that the Whitehouse/National GOP has told the Ohio GOP to stay home since the Ohio GOP/Republican "Tax and Spend" politicians have really screwed up Ohio's economy to the point that Washington is getting the blame.

Ohio Legislators have only torn apart Ohio's Intrastate economy.  Every effort to develop any tax-reform has only widened the GAP between the rich and the poor in Ohio.  Ohio Legislators appear to be only addressing the demands of large Corporate America, lobbyist groups and Special Interest by handing out enormous tax-abatements to any Ohio business that threatens to leave the State of Ohio, or not locate here in Ohio.  These "non-tax-revenue" jobs you are creating is at the cost of the majority of the other Ohio taxpayers who are required to pay higher taxes and fees because of the loss of tax-revenues you built unfairly into Ohio's Tax Law. 

The "Total-Economic-Development-Packages" have been so extensive that the net increase in jobs in Ohio have caused tax-revenue-losses (I think you call these investments) netting $486,000.00 per "PART-TIME" job (DHL), and on the local level, 100 percent tax-abatements for all Real-Property, as well as, Personal-Property taxes for 15 years, plus a 1/3 loss of Income-Tax revenues for 17 years for A NET INCREASE OF ZERO JOBS IN OHIO (BMW Financial).

Excused tax revenues (in the name of "Job-Creation/Rentention) have expanded so much in Ohio that even after you (the Ohio Legislators) doubled all fee revenues, increased the Sales-Tax Rate by TWENTY PERCENT, added 4 cents of additional State Gasoline-Tax, and have caused every School System to have to seek additional Property-Tax increases from every local individual and business taxpayer, your still headed for a projected $5,000,000,000.00 (5 Billion Dollar) short fall for the upcoming State Budget.

Your using "VooDoo" math that states that for every $1.00 of tax-abatement that is handed out to a large corporation, it causes $60.00 of increase spending within a local area.  If that's true, will Wilmington, Ohio see a $25,320,000,000.00 (25.32 Billion Dollar) increase in local spending as a result of your decision to give DHL a $422,000,000.00 Tax-Abatement package (over a 15 year period)?  If only ten percent (a low figure) of that 25.32 billion came back to the State of Ohio in additional Sales, Income or Property Tax Revenues, it should be yielding over $2,500,000,000.00 (2.5 Billion dollars) of additional tax revenues for the State of Ohio (over a 15 year period), just from that one example.  That means the Wilmington, Ohio area should be seeing an increase (over and above their current levels) of about the same amount of "economic-activity" (over the next 15 year period) as the total economic-activity that currently exist of all cities combined, within the entire County of Cuyahoga in Ohio, have in one year.  I question seriously if that could ever happen based on the fact that the $422,000,000.00 tax-give-a-way was based only on adding an additional 900 jobs in Ohio, and most of those jobs are likely "part-time" jobs providing "no-benefits" to those individuals.

I gave the above example (there are many others) because you (the Ohio Legislators) are using the theory that "tax-abatement" will stimulate economic growth by creating or retaining jobs.  However, higher taxation has a direct effect on all taxpayers, who live within a local area with their ability to support the local economy.  When you decease tax revenues from one group (those that get tax-abatements), your artificially creating the need to increase the tax revenues from the other group (those that don't get tax-abatements).  This increase in taxation, has a direct and equal negative effect onto those (the non-tax-abatement group) in their ability for them to also  stimulate their local economy.

The recent decision by the Federal 6th Circuit Court (last month) declaring Ohio's use of an Investment Tax-Credit is unconstitutional, must stand.  In fact, it should be expanded to include all tax abatements and tax credits not only on a State level, but a local level as well, and then expanded to all Federal Court Districts to include all 50 States.  Any expenditures made by the State of Ohio, to reverse this decision by appealing this to a higher court, is an abuse of Ohios collected tax revenues, paid by all Ohio taxpayers, to overturn an unfair tax advantage that had been unfairly developed for a few, but didn't apply equally to all, but has now been corrected by that Federal Court Decision.

Your increasing the "standard-of-living" and wealth for some Ohio taxpayers, by reducing the "standard-of-living" for many other Ohio taxpayers.  The State of Ohio has no business getting involved with which companies pay lower taxes, and which ones must pay higher taxes.  Everything should be on a fair and equal basis.  If Ohio's taxes are out of line for a business to consider moving here, maybe it's out of line for all Ohio business already here.

In fact, your requiring that the "low-income" (a nonqualifying tax-abatement category called retailers) be your collector and payee of your increased tax requirements needed to offset the tax-abatements your handing out to so called "high-income" jobs.  The general attitude of Ohio's Tax-Law (as well as many economic analyst) treat Ohio Retailers as if they are not an important part of Ohio's economy.  While your using "high-paying" jobs as a factor that can benefit local economy justifying tax-abatements, your assuming that "lower-paid" jobs are not meaningful in also supporting the local economy. 

The lack of reasonable tax-reform has taken away the ability of many Ohio's businesses (who are forced to pay low-income wages without benefits) to even be able to compete on a fair and equal basis with Ohio consumers.  Yet, every effort to resolve Ohio's Tax Revenue shortages are causing you to unfairly put additional burdens onto those same Ohio's businesses, by risking major losses of their "out-of-state" sales by requiring them to become the "tax collectors" for many other State Governments, while requiring them to overhaul their entire accounting systems (perhaps at great expense) to be able to comply with your new MTC requirements, and your assuming they will still get the same out-of-state business they currently receive, and, what happens if they don't retain that out-of-state business because those consumers simply went to other businesses, in other States that were not a part of the MTC (Multistate Tax Commission).

That's why the Federal Government needs to take action.  State Governments (most) have taken tax abatement to such a high level in so many ways that they are fighting with each other to see who can "steal" jobs away (in the name of "Job-Creation") from other States, through the use of tax abatements.  The State Governments have no business complaining to the Federal Government that their tax bases are erroding when its their own actions which are causing their overall tax revenues to drop putting unfair higher burdens onto other taxpayers.  State Governments want to be able to be more competitive in order to retain and attract new business ventures, however, they (the States) have abused most of their own taxpayers and are trying to get the Federal Government to fix the problems that they themselves created with their own tax system. 

I agree, the Federal Government needs to correct the State Taxation System by disallowing any and all
tax-abatements, tax-credits and anything else that the various State Tax Systems use to unfairly favor one taxpayer over another (regardless of size).  States do have the right to compete, but they must be made to compete on a fair and equal basis with all of their own taxpayers carrying an equal share of the cost of Local and State Government.  Any variance distorts what a States normal tax burden should/would be for the average taxpayer.

When you expanded the Sales-Tax in Ohio, to include many services that weren't prior subject to the tax, you should have reduced the State Sales-Tax rate at the same time.  You did exactly the opposite!  You have given the Ohio consumer much more incentive to shop "out-of-state".  Your'e still looking at a Five Billion dollar shortfall.  What's next?  Are you going to go against your word that this was a "temporary" tax increase and extend it or make it permanent?  You probably are going to make it permanent and make plans to even raise it more while making additional plans to expand "tax-abatement" to more areas, perhaps lawyers, attorneys, accountants and consultants.  After all, why should the retailers complain about sales-tax since its the consumer that pays it and not the retailer. 

Hello Legislators!  Are you that "tuned-out" that you don't realize that many Ohio consumers are now shopping "out-of-state" (lowest-price, free-shipping and no-tax), and no longer need to shop at Ohio retailers? 

You should have been more concerned about the basic economy within Ohio, but you have only tried to expand Ohio's economy by using "gimmicks" to create more jobs using "tax-abatements" to steal other jobs from other States while making Ohio businesses less competitive with other Ohio consumers (individuals, as well as, businesses), shame on you.  Since most other States economies are recovering at a faster pace than Ohio's, they (other States) will be in better position to approach Ohio's businesses with bigger "tax-breaks" in the near future to steal more of our businesses. 

When is one State going to sue another State, in Federal Court, for using unfair tax-abatement tactics to cause deliberate economic harm to another State?

I'm looking to vote for an honest Legislator who has all Ohio taxpayers in mind.  Got any ideas?

A concerned Ohio taxpayer.

Rick Wells

NOARD
Brunswick, Ohio  44212
email:  k8sci@noard.com
PHONE:   330 225-7373   

WARNING/Governor Bob Taft is loose with the Taxpayers Checkbook

June 18, 2004

TO: All members of the Ohio General Assembly

While you're enjoying your summer break, Governor Taft may be increasing the
upcoming Budget Shortage by hundreds of millions of dollars (perhaps even a
Billion dollars).  Through HB-427, you gave him (and the Ohio Department of
Development) the ability to expand the Ohio Tax-Expenditures to additional narrowly
selected types of businesses, and with a fifty percent additional time period (15
instead of 10 years).

The following is a quote from the State of Ohio Executive Budget, Fiscal years 1998
and 1999, book two, Tax Expenditure Report.  This applies to all other fiscal periods,
including our current budget period.

January 1, 1997 (from Ohio Tax Commissioner Roger W. Tracy prepared for Governor
George V. Voinovich and the 122nd General Assembly).

From the cover letter:
"The responsibility of evaluating the public policy merits of tax expenditures belongs
jointly to the General Assembly and the Governor.  However, the Tax Expenditure
Report provide statistical data that can be used as a tool to examine prudent state
government finance and fiscal policy for the benefit of all Ohioans."

From page 1 of the introduction:
"What Are Tax Expenditures?
Tax expenditures are tax dollars that are foregone through deductions, exemptions,
and credits in tax laws.  These laws are designed to encourage certain activities or to
help taxpayers in special circumstances.  These provisions of the law result in a loss
of tax revenue to state government, thereby reducing the funds available to pay for
government programs.  As such, the fiscal impact of a tax expenditure is in effect the
same as a direct government expenditure.  However, while expenditures by the state
government are included in the spending side of the state's budget, tax expenditures
do not appear in the budget.  They simply cause less tax revenue to be collected. 
They are not analyzed and reviewed in the budget process.

Our examination of tax expenditures should not suggest that it is some how "right"
for government to tax one hundred percent of any tax base.  What this report should
show, however, is how far our tax structure has departed from its simplest form. 
Moreover, to the extent tax expenditures reduce revenues, tax rates must be higher
to produce any given level of revenue.  The significance of this can be seen in a
simple example.  If the General Assembly were to repeal all of the 50 tax expenditures
in sales tax law, the taxable portion of the tax base would be greatly expanded.  The
General Assembly could then reduce the sales tax rate from 5 percent to about 2
percent with no loss in revenues.  That is, a 2 percent sales tax rate with no
exemptions would generate the same revenues as the current 5 percent rate with its
50 tax expenditures."

The Local, County and State high levels of  "Tax-Breaks" being currently handed out
(in record amounts in the name of "Job-Creation") will certainly require that the tax
rates (in almost all tax areas) be required to be increased in order to maintain the
needed tax revenues for providing Local, County and State government services.  As
these rates are permanently increased, and/or, any so-called "temporary" increases
are enacted, the State of Ohio will only continue to slide further down in its
competitive attributes when compared with other States, both in the total Local/State
individual "tax-burden" ranking (currently #3), and the Business Tax Climate ranking
(currently #47).

Governor Taft, the Ohio Department of Development, as well as many of you, seem to
feel that the State of Ohio cannot compete for Jobs because the "tax-code" in Ohio
(that you require ALL to pay) is so bad that you must eliminate (via the abatement
credit method) almost all of it, in order to compete with any other State.  Governor 
Taft and the Department of Develpment are currently extremely active in making 
many 15 year commitments for Taxation-Revenue LOSSES,  which will have a
negative impact on all other Ohio businesses, unless they too, threaten to leave the
State, but only if they meet certain requirements that you have defined.  This will also
severely impact the funds neccessary for the State (and its political subdivisions) to
provide needed services  to the Citizens of Ohio.  Some how you are  thinking this is
fair.  These 15 year tax revenue loss commitments will be in place long after many of
you will be gone from Ohio Politics.  Some of you will even leave the State of Ohio,
because you might find that a different State has more to offer you, or your family.

These "Tax-Incentives" are costing Ohio Taxpayers today up to $250,000.00 per new
job (Scioto County) and even 100 percent "Tax-Abatements" for both Real-Estate 
and Property Taxes for 15 years plus a 1/3 loss of State/Local Income-Taxes for 17
years plus over $10,000,000.00 in other Local/State incentives for zero new Ohio 
Jobs (Franklin County).  These incentives are driving-up the tax rates for everyone
else.  At what point is it going to end?  How much is enough?  Are we (Ohio) headed
for 125 percent "tax-abatement" for all Local/State taxation for 50 years so that we
can start paying for large business to either stay here (job retention) or move into
Ohio (job creation).

The point is that whenever you give any incentive away for anything, your spending
other taxpayers money and forcing everyone else to pay higher taxes.  When you
discuss tax rates, it appears that the words lower, reduce, eliminate are not in your
vocabulary, however, temporary and "its only a penny" is frequently used.  Where
do you think that Ohio would fall in the rankings (both Local/State tax-burden and
Business Tax-Climate) if all of Ohio's Tax-Rates were cut in half (accross the board),
but then everyone fairly paid (no exceptions).  You would end up with more tax
revenue then you have now, and you would restore the fairness in the tax-code.

The June 10, 2004 OBM Monthly Financial Report was released today.  It reflects a
$305,743,000 shortage in all GRF Tax-Revenues for the month of May 2004.  Many
School Systems are screaming for needed funds and most are planning to have
levies on the ballot this fall, even after eliminating thousands of Ohio School Jobs
putting thoses Ohio individuals out of work, adding further to Ohio's slower recovery
rate.  Can Ohio really afford to keep creating more jobs that do not provide actual tax
revenues?

I urge you to support HB-407 (Gibbs) and separate intrastate from interstate
commerce from Ohio's Sales-Tax requirements.  One additional item that must be
added to HB-407 is to eliminate the "Shipping-Cost" from the "Price" section of what
is required to be subject to the Ohio Sales-Tax.

I urge you to REPEAL THE SALES-TAX INCREASE THAT WAS IN HB-95 which only
encourages Ohio Consumers to shop "out-of-state" driving Billions of dollars of
economic activity away from Ohio Businesses.

What are you going to do if 10,000 additional Ohio Businesses (next month) demand
the same level of "Job-Creation/Retention" tax credit that you have already granted
to other Ohio businesses?  Are you going to apply the tax law fairly?  Who is going
to pay the cost of those additional expenditures?  We (Ohio) is headed for a 10
percent Sales-Tax Rate, home owners will have to pay twice as much in Real-Estate
Taxes, State gasoline-taxes will go up $.10/gallon and become subject to the State
Sales-Tax, most activities and/or services provided by Ohio Schools and City
Governments will become subject to FEES, a new $25.00 filing fee will be established
in order to file any State Tax Return (including all income-tax and monthly vendors
Sales-Tax Returns).

On the bright side - Ohio should consider putting a "CAP" onto its State Income-Tax.
Only the first $100,000 of income would be subject to the State Income tax (that way
some very high income earners in this nation would be less likely to rule out Ohio in
favor of a State with NO income-tax.  In order to provide lower cost to the average
Ohio Citizen for legal services (if they need to file bankruptcy and/or become involved
with a foreclosure), all Ohio Lawyers and Attorneys should be exempt from all State
income-taxes (I'm sure that they will pass on the savings to their clients, right?).  This
will also encourage more Law-Firms to relocate to Ohio which would add to the "Job
Creation" effort.

What you're currently doing is simply not fair to all Ohio Taxpayers - Businesses as
well as Individuals.  Your only increasing everyones "Tax-Burden" in favor of 
creating non-tax-revenue jobs using "Job-Creation" as a excuse for not doing true
"tax-reform".  What would you do if suddenly "Tax-Abatement" and "Tax-Credits"
where declared illegal by the Federal Government BECAUSE IT DID NOT TREAT
YOUR TAXPAYERS ON A FAIR AND EQUAL BASIS?

Regards,

Rick Wells
NOARD
Brunswick, OH  44212

email:  k8sci@noard.com

PH: 330 225-7373 

President Bush is being wrongfully blamed for Ohio's problems !
The real Ohio problem is in Columbus and it is getting worse: OHIO 

   HOME   -  Northern Ohio Amateur Radio Development  
                                                                    www.noard.com  

 Northern Ohio Amateur Radio Development - Rick Wells, K8SCI 
  PH: (330) 225-7373 
E-Mail 

Created using:

Rick Wells

Web Site Hosted by
Network Solutions 

Brunswick, Ohio is 20 Miles Southwest of Cleveland, Ohio

Updated  10/15/2008

 

...