Big tax cuts for the wealthy, few new jobs

- July 9, 2014
   

Big tax breaks to the wealthy in MBR, with little job growth; unemployment rate falls as workers leave the labor force; the Supreme Court gives predatory payday lenders a pass on triple digit interest rates; but severance taxes to cover public costs of fracking are “puny;” and Director Amy Hanauer to rally the City Club of Cleveland on making our Ohio economy work…for all of us.

Register now Join our fearless leader Amy Hanauer on July 25th at the City Club of Cleveland for a noon Friday Forum presentation on making our economy work…. for all of us. Make your reservation now.

Cuts and Breaks – The mid-budget review doles out over $200 million in tax cuts to the wealthy next year, continuing the unfortunate Ohio tradition of special tax breaks to specific, narrow groups. A new report by Policy Matters Ohio details the more than $400 million that will be cut from public investments for fiscal year 2015.

Fewer job seekers – Ohio’s unemployment rate fell in May to a post-recession low of 5.5%, as Ohio created 2,900 new jobs. Sadly, most of the drop was not from job creation, but because 14,000 job seekers just stopped looking.

Shark Tank – The Ohio Supreme Court voted last month to allow payday lenders to skirt consumer protection legislation capping interest rates at 28% and instead charge exorbitant rates in the triple digits. Policy Matters Ohio has weighed in against payday lending abuse over the past seven years.

Communities Pay – Fracking creates big expenses for local communities, but the new severance tax in HB 375 is, according to Governor Kasich, “puny.” This report weighs the proposal against existing legislation and recommends real fixes.

Fit to print – Zach Schiller’s op-ed in several Sun newspapers finds that tax cuts favor the affluent, deprive the state of resources and don’t create jobs. The Plain Dealer editorializes on Wendy Patton’s excellent work on childcare and Hannah Halbert’s great work on the Ohio Earned Income Tax Credit. And Amy Hanauer writes in Dissent magazine about how local communities are creating positive change in a national landscape that has too often left families behind. Just a sampling of our dozens of recent press hits.

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