Policy Matters testifies on state budget
Posted March 21, 2017 in Press Releases
Calls for additional support for public transit, reversal in tax policy
Policy Matters Ohio testified in two Ohio House committees today regarding Governor Kasich’s proposed state budget. The Cleveland-based nonprofit research institute called for greater state support of public transit and a reversal in state tax policy, which has focused on income-tax cuts and increases in sales and other taxes.
Wendy Patton, senior project director, submitted written testimony to the House Finance Subcommittee on Transportation encouraging them to find a sustainable source of revenue to replace sales tax revenues lost to public transit agencies with the change of the Managed Care Organization tax, and to restore General Revenue Fund support for public transit to earlier levels.
Citing President Trump’s budget proposal, Patton noted that, “Federal budget cuts are likely to squeeze the states, taking funding from key program areas and diverting them to new federal priorities.” She suggested that “one thing you could do is ensure more people can access a ride to work, one that allows them to arrive within a reasonable amount of time.”
Zach Schiller, research director, told the House Ways & Means Committee that, “While there are a number of positive elements in Governor Kasich’s tax proposal, such as raising the severance tax and cutting some unnecessary tax breaks, further slashing income taxes is not in Ohio’s interest.” Previous such cuts have not led to greater job gains, he noted.
Schiller said that tax cuts since 2005 are costing Ohio $3 billion a year, and called for closing tax loopholes, including the deduction for passthrough business income. “We need a different approach to tax policy in Ohio to generate the resources we need,” he said.
Policy Matters Ohio is a nonprofit, nonpartisan state policy research institute with offices in Cleveland and Columbus.