New bank tax: weaker by design

Policy Matters Ohio - June 20, 2012
   

Weaker by design – The Ohio House has undercut Gov. John Kasich’s proposed Financial Institutions Tax with new credits and exemptions, including millions in tax cuts for mortgage lenders, securities brokers, payday lenders, finance companies and other so-called “dealers in intangibles.” A chief aim of the new tax was to eliminate loopholes in the old taxes. House changes mean that besides reducing the revenue the tax would generate, a host of new provisions would chip away at the base of the new tax and continue to leave big banks with a larger share of the proposed rate cuts. Our update on the FIT recommends that the new tax should increase revenue to help fight the foreclosure crisis and to restore public services that have been slashed in the current state budget.
 
Paying attention – Ohio Senate President Tom Niehaus may be listening to our recommendations on the Ohio Venture Capital Fund Program, according to this article in The Columbus Dispatch. In testimony before a House committee, Zach Schiller raised alarms that funds were not being invested in Ohio to the extent required by state law. Neihaus called the program “an important tool that we use to encourage investment in Ohio,” but also told The Dispatch that “there needs to be some mechanism of reviewing to see if they are fulfilling their commitment.”
 
Thanks from Amy Hanauer and the Policy Matters team.

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