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John Kasich TV ad calls Ohio one of highest taxed states
Quote: “You can’t raise taxes in Ohio. We are one of the highest taxed states in the country.” John Kasich on Aug. 22, in a television campaign ad
Republican gubernatorial candidate John Kasich amplified his tax message recently with the claim that Ohioans pay more taxes than people in most other states.
While he frequently makes the statement on the campaign trail, the claim is the stinger in a campaign television ad that began airing statewide in late August.
“You can’t raise taxes in Ohio. We are one of the highest taxed states in the country. … If you raise prices in the state you drive taxpayers away.”
Kasich made similar claims Sept. 14 during the first gubernatorial debate with Democratic Gov. Ted Strickland, making the issue worth examining now.
The statement, Kasich says, refers to an individual’s tax burden — the sum of state and local taxes, such as property taxes and local sales taxes, that an individual pays. And he specifically uses a ranking by the conservative-leaning Tax Foundation.
The Tax Foundation ranks Ohio’s total tax burden seventh highest, according to its 2008 study, the most recent available. Among 50 states, seventh qualifies in our book as “one of the highest.”
But the ranking deserves more discussion because of an ongoing debate among tax experts about how to best evaluate or measure the total tax burden.
The Tax Foundation first combines state and local tax collections, and makes projections, or estimates, for the year the study is completed. The Tax Foundation also considers taxes Ohioans may pay in other states, and vice versa. It then divides the state’s total tax collections by total personal income.
Translated: The average Ohioan pays about 10.4 percent of his or her income to state and local taxes compared to the national average of 9.7 percent. Ohio takes a hit in the Tax Foundation study because of its relatively high income tax rate.
Other tax experts, including those at the Federation of Tax Administrators, agree that combining state and local taxes and dividing that by total personal income offers a reasonable way to look at the burden. But these experts stick with the raw U.S. Census data without making any adjustments or projections.
Ohio has the 16th highest total tax burden — all state and local taxes — as a percentage of personal income, according to the Federation of Tax Administrators’ crunching of U.S. Census numbers. That ranking moves Ohio from the top quarter of highest taxed states to the top third, giving the state a bit more cover.
The Ohio Tax Department likes to brag about another view of tax-burden numbers offered this year, also by the Federation of Tax Administrators, but one that only looks at state taxes.
By that measure, Ohio has the 33rd highest state tax burden as a percentage of personal income. That means only 17 other states collected a lower percentage of taxes than Ohio. But beware: This ranking looks only at the taxes imposed by the state — not those imposed by local authorities .
The problem for voters is that experts will be debating the issue long beyond the election, so PolitiFact Ohio wants to keep Kasich’s claim in the context of the governor’s race.
By citing the Tax Foundation study, Kasich is invoking several taxes the governor can’t easily influence — such as school levies passed by voters, or sales taxes boosted by county commissioners — to paint Ohio’s tax picture as bleak.
The claim also obscures improvements Ohio has made at the state level in reducing both business and personal income taxes since 2005, including a nearly 17 percent cut in personal income tax since then .
One thing about Kasich’s claim is clear: By one measure, it’s accurate. But how to best define tax burden is cloudier, and a look at other research shows that rankings can vary wildly depending on which taxes are included, which data sets are employed and which projections are applied.
For these reasons, we rate Kasich’s claim Half True.
What is PolitiFactOhio?
Several times a week, the Dayton Daily News will publish content from PolitiFactOhio to help you be more informed as a citizen and a voter.
PolitiFact Ohio is a partnership of The (Cleveland) Plain Dealer and PolitiFact.com.
PolitiFactOhio investigates comments from public figures and runs their claims through the “Truth-O-Meter.”
The comments are fact checked and then ranked as true, mostly true, half true, barely true and false. If someone has gone off the deep end, we will rank their statements as “pants on fire.”
Read past PolitiFactOhio stories, see how politicians rate in previous Truth-O-Meter rulings. PolitiFactOhio.com
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By jackie
October 6, 2010 8:09 PM | Link to this
Do not bite on the tax issue this is a joke who does not know about the taxes we live here. Why was this not done back when republicans had office. Come on Ohio voters wake up! Kaisch and Portman both are bad for Ohio. Ohio voters better do reasearch obviously people are frustrated, scared and they are feeding off the Ohio voters. Both stand firm on messy with social security with their buddy republicans and now they are lying to get your votes. Ohio stop the trusting at face value if you dig enough you find these guys have two left shoes and they will be the downfall to take Ohio over the cliff from what republicans want to do! Do not take my word do reasearch !
By Teabagging Republican
September 20, 2010 6:45 PM | Link to this
Everyone knows what this state needs - more tax cuts and more good jobs like Wal Mart, McDonalds and Pizza Hut can give you. Then you’ll be able to afford a new big screen tv to watch Fox News on.
By Norma Rae
September 20, 2010 11:32 AM | Link to this
Love this article/comments — you can’t beat solid mid-west sensibilities. We don’t need sweat shops in Ohio. We need good jobs. State of Ohio and cities gave businesses every break, and jobs were still exported to Asia and South America, where they kill people for mentioning the word “union”. Republican leaders are cultivating a following that thinks of society in terms of a caste system, where immigrant workers and welfare recipients are the untouchables. Ask yourself why that would be, and whether you want to live in a country like that, because it’s possible when you think/talk/vote Republican.
By JS
September 20, 2010 9:52 AM | Link to this
I’d like to add, though, that this is pretty much a straw man argument when it comes to jobs. Companies care nothing for what taxes their employees pay in whatever state. If you want to have a debate about corporate tax rates and jobs, that would be valid, but don’t kid yourselves; CEO’s and shareholder boards do not care how much of their incomes the employees take home. They do care how much the pay employees, and I mean that in the most negative way possible. The less they can pay, the better. Taxes aren’t why jobs go everseas; it’s a willingness of those nations’ leaders to enforce any sort of safety or environmental standards, or any standards whatsoever. I also mean that in the most negative way possible. Companies move because they can pollute, pay ten cents a week for child labor working 18 hour shifts in Industrial Age conditions. American companies didn’t stop that stuff; they exported it and do not believe for one second that the unions have no purpose to serve anymore; those companies would bring bck those practices as fast as you can blink if they get half the chance.
By Jesse
September 20, 2010 8:50 AM | Link to this
Facts are facts no matter how the DDN tries to ‘spin’ them.
By JS
September 20, 2010 8:33 AM | Link to this
Before you can argui about a fact, you have to first agree what comprises a fact. Here, we’re talking statistics, which consist of a lot of data, arranged in a certain way to either discover something or express a conclusion. The problem with Kasich’s data and conclusions that he uses to make his statement, is that they depend on projected results, which means the Tax Foundation makes assumptions. What happens when we assume? Come on class.. you know this one.
By EthicsWatch
September 20, 2010 8:03 AM | Link to this
Wages are an expense line item in corporate budgets. The lower the wages and the fewer the number of employees the higher the profit. This is how executives from Wall Street think of JOBS. If you want fewer jobs available and lower wages, vote for Kasich. If you want MORE JOBS available at better wages, vote for Strickland. Voters can choose.
By Rick
September 20, 2010 7:50 AM | Link to this
I agree with ssbn… politics & politicians do not represent nor care about the average working people. Politics is bad for business and bad for people. Taxes are bad for everybody… it leaves a citizen frustrated, broke or dependent. I for one get very angry when I see welfare recipients loafing instead of working!
By jeff
September 19, 2010 11:38 PM | Link to this
Kasich worked for wallstreet,nothing more needs to be said.
By True Story
September 19, 2010 10:01 PM | Link to this
No such thing as a Pro-Jobs Republican. Unless you consider a temp job with no benifits a real job. No one should trust Kasich, loss millions of dollars for Ohio pensions. Didn’t get the job done for Ohio pensiona and let Ohio workers down. Untruthful, says he worked in a two person office in Columbus, OH for bankrupt Lehmans, then says on Faux News ” I’ve said three times this week I worked on Wall Steet”. In the TV ad.
By paul
September 19, 2010 9:52 PM | Link to this
Unions demanding Cadillac health benefits and pensions are the reason jobs left Ohio. And Clinton’s NAFTA was the icing on the cake. I wonder how Georgia’s taxes compare to Ohio’s? (NCR)
By FACTS PLEASE
September 19, 2010 9:39 PM | Link to this
Hey ethics watch-Where do you get your information??? The States with the best tax climate are: SD, Alaska, FL, Delaware, Montana, Nevada, New Hampshire, Washington, Wisconsin……..The states with the loweset average income….Hawaii, Kentucky, Texas, Alabama, Virginia, West Virginia, Mississippi, South Dakota. This is from the tax foundation and the census. Your link was bogus. Please use specific data…not something you pulled out of your big *ss. What does that tell ya???
By nihilist
September 19, 2010 8:27 PM | Link to this
In reality with taxiation we purchase citizenship and all the things that come with that citizenship. Unfortunately,in Ohio many believe that they should not pay taxes because they can do better things with their money. Everytime I hear a voter claim to want smaller government it is to the tune of lower taxes. We must become aware that the best jobs in the economy right now are not in the private sector. Therefore paying taxes means literally paying for more and more families. The way the state of Ohio funds schools has been illegal for sometime now. The legislatures do not want to raise taxes and yet they also do not want to change how things are funded unconstitutionally. Therefore, it is time for government to earn its keep. They have to further justify themselves to the public before they can raise our taxes. The problem lies with Kasinich is that he cannot justify our government right now because they are so busy playing politics that they forget to help out their population. My favorite was Strickland’s school overhall that merely wanted more days of school. When he realized what the budget cost would do he quickly backed down. Ohio government had better be scared because people are beginning to question why they have to work for a living and there politicians just get to watch and do nothing. There are too many people in this state government getting paid to do nothing. The time for our government to sit idle why good people are forced to go without food. Or highschool kids pass-out in class because her Dad had an interview and spent their food budget on a shirt. Government has got to start earning their money and realize what people are going through.
By EthicsWatch
September 19, 2010 7:35 PM | Link to this
One fact Strickland emphasizes is not disputed: Ohio income-tax rates have declined by more than 17 percent since 2005, when Republicans enacted a sweeping overhaul of state taxes. http://www.cantonrep.com/newsnow/x1129164785/Right-numbers-We-fact-check-Strickland-Kasich-numbers Actual tax burdens also reflect income levels of that states citizens. States with extremely low tax rates typically have the lowest average household incomes. So what does this statistic really tell you?
By BigD
September 19, 2010 6:26 PM | Link to this
@ EthicsWatch I can’t find a reference to this on FACTCHECK at all and the only thing that comes up on a KASICH search and all see is a UNION telling lies about him…?
By BigD
September 19, 2010 6:13 PM | Link to this
Here is a link to the Tax Foundation’s tax burden by state and yes, Ohio is ranked #7. It was #45 in 1977. http://www.taxfoundation.org/taxdata/show/474.html These folks are non-partisan but I can tell you that the Social Democrats hate them.
By seen it all
September 19, 2010 6:02 PM | Link to this
karon telling people what is ‘educated’ and what is not? Now I’ve seen everything.
By BigD
September 19, 2010 5:58 PM | Link to this
Karon must be taking advice from her uneducated union brethern. Exactly who on WLW is “uneducated”? Bill Cunningham? Well Bill is an attorney, business entrepreneur, and former Ohio Assistant Attorney General. He was selected in 1983, as Ohio’s Outstanding Young Lawyer by the Ohio State Bar Association. What KARON really means is that they haven’t been “re-educated” to fit the socialist mold the Democrats love soooo much!
By Papagino
September 19, 2010 5:42 PM | Link to this
@ethicswatch - Fact check is proven wrong by your own liberal cnn.com - Ohio ranks 7th in taxes at 11.1 percent. State - up to 5.75% City - 1 to2.5%, School - .5 to 1.5%, sales tax - 5.5% It all adds up. The secret to a balanced budget does not lie in constantly increasing taxes, it lies in controlling spending. Roads, Law Enforcement, schools, these are legitimate spending for State governnment. Arts, useless social programs that perpetuate poverty rather than alleviate it, grants for stupid cr%$ are not.
By Lou
September 19, 2010 2:14 PM | Link to this
Karon, no matter what you think of WLW. Bill Cunningham is a lawyer & that take several yrs. of education. Don’t under estimate news commentators esp. Bill.
By Lou
September 19, 2010 2:10 PM | Link to this
I thought NAFTA was passed during the Clinton years. It is true that Oh is one of the highest taxed states. Ck with the National Tax Payers union & I believe Forbes had an article last year showing the highest taxed states. Ohio is up there. High taxes & fees are job killers. Businesses need to make money to survive. I’d leave the area too, if I couldn’t make a profit.
By karon
September 19, 2010 1:48 PM | Link to this
You get your information from WLW??? Those hosts are NOT educated people!
By Jim
September 19, 2010 11:39 AM | Link to this
Bill Cunningham, WLW Cincinnati radio has interviewed several companies officers that picked other states to move to. They all said the same, costs to much to do business in Ohio so they went to other states.
By ssbn
September 19, 2010 10:21 AM | Link to this
Facts are Facts, both Bush’s were into mega-outsourcing. W, being worse; trying to outsource our ports to a middle eastern country. During a war in the middle east. Seems that Bush and the GOP were attempting to commit treason.
By FE
September 19, 2010 10:16 AM | Link to this
Regardless of where you pay your taxes,it still comes out of your pocket!Good try Dayton Democratic News to justify high Ohio tax rates!
By EthicsWatch
September 19, 2010 10:13 AM | Link to this
Factcheck says this is not true. Another Kasich untruth and misrepresentation. Vote responsibly.
By ssbn
September 19, 2010 10:07 AM | Link to this
Let us remember that GW Bush outsourced more jobs than any other former president. He even tried to outsource our ports; to a middle eastern country, no less.
By L Berry
September 19, 2010 10:02 AM | Link to this
How can a descussion on Taxes be moved by the liberal left into comments about jobs moved overseas. Ohio lost more jobs to other States than overseas. Look at NCR, Gov Strickland did nothing when Georgia used Obama’s Stimulus funds to get NCR. Strickland did nothing to stop DHL from moving out of Wilmington. All of those jobs went to other States. Why? Maybe the high tax rates here influnced decisions. When you look at all taxes, Federal, State, Local, schools, property etc it adds up to more than 50% for most middle class and the Rich pay even more. When I retired I looked at moving, but because my children and grandchildren are local, I stayed even though I could have lived better in states that didn’t tax me as much. Strickland is also pro Union, because the help fund his campaigns. That also drives business away.
By ssbn
September 19, 2010 9:59 AM | Link to this
Neither party is willing to address state income tax, city income tax, property tax, sales tax, user fees and the like. NO political party is willing to address the issues. If the GOP were elected, they would continue the high tax rates. If the Teabaggers were, they would suck up to the GOP and change nothing. Solution: Tax revolt.
By Jerry
September 19, 2010 9:47 AM | Link to this
OH is a leader in taxing estates inherited by direct decendents. Strickland is not willing to address this issue. Hopefully Kasich, if elected, will change this making it more similar to that of surrounding states. If not, I may move to a surrounding state in order to prevent my daughter paying this unfair tax.
By xlf
September 19, 2010 9:41 AM | Link to this
the candidate that organizes and implements a full scale tax revolt may be an option.
By jj
September 19, 2010 9:40 AM | Link to this
Kaisch another joke and people with no minds follow him. America it is time to wake up you forget two days later after these people vote on bills, stall, delay or use spending as a tactic to get your vote it is time to stop following too many people suffering and these type of tactics are a contribution for over 22 months.
By ssbn
September 19, 2010 9:33 AM | Link to this
The taxes in Ohio have been a problem for decades. It is not one party or the other that caused it. It actually goes all the way down to city govt. There is no reason to have State and city tax plus property tax and user fees. The question is, what do I get for my money? I may work in Dayton but, live in another city (with lower income tax) and end up paying more to work in Dayton? Odd. I pay property tax, which includes money for schools but, have no kids. And, since my property values have declined, the school district can no longer make the argument about better schools and property values. If the GOP were so concerned, why wasn’t something done years ago? Or was Taft too busy with his coins? Then there is state income tax. We should get an accurate accounting of where the money goes. The lies go way back. Dems and GOP both. Oh, and the Teabaggers have no plan. They will side with the GOP. More coin scams.
By B&G Blues...Huh???
September 19, 2010 9:03 AM | Link to this
@blueandgoldblues: “How can Kasich and other reps blame Strickland and other Dems when it was Kasich and the rest who sold our jobs overseas?” How about explaining with some facts how jobs get sold overseas. Peel back the onion and show some cause and effect of how we got here. Don’t spout talking points, gives some facts that are verifiable.
By Limp73
September 19, 2010 8:26 AM | Link to this
Where have I heard this rhetoric of sensationalism,exaggerated lies and half-truths before? ….hmm,let me see here, Rush,Beck,Willis Carto,Alan Stang…ah,yes don’t forget Adolf Hitler! DOIT!
By Ax Taxes
September 19, 2010 8:10 AM | Link to this
Funny how Pa. has no tax on clothing, De. no sales or income tax, Tn & Fl don’t have income tax plus there are others and yet you have people that want to blame the lack of tax on internet bought goods as a solution. The solution would be to find out how states without taxes do it and adopt what they do instead of finding ways to add/increase Oh taxes. The 99% income tax increase we had in the mid ‘80’s didn’t fix anything so I doubt that taxing internet goods or any other added or increased tax will today.
By blueandgoldblues
September 19, 2010 8:07 AM | Link to this
How can Kasich and other reps blame Strickland and other Dems when it was Kasich and the rest who sold our jobs overseas? I thouht Republicans were the “moral pro-family” and “pro-life party” HOGWASH! They are the rich man’s party.How low can these Republicans go? Don’t worry,allownig casinos to spring-up in Ohio to raise tax revenues will save everything. AND?…..(families broken due to gambling addiction and womanizing at casinos) HYPOCRITES!!!!!!
By smoke & mirrors
September 19, 2010 8:05 AM | Link to this
Ohio is one of the most taxed states in the union. Lowering taxes on business and local taxes would improve the economy. Just look at Trotwood and Dayton. Both have high taxes and no services or business. Look at Kettering, they hired 5 officers! Maybe Dayton and especially Trotwood should lower their taxes and change their “model” for doing business because what they are doing now is a miserable failure!
By Downhill from here
September 19, 2010 7:31 AM | Link to this
State and local governements are required by law to balance their budgets. Current tax rates reflect this. So Ohio doesn’t have a tax problem it has a spending problem. It has a spending problem becuase of the multiple overlapping levels of government at the state, county, city, and townships as well as too many school districts. Also, the ‘average’ calculation is not what you should be looking at. Those of us who have achieved some level of success in our jobs are paying 15% or more in state and and local taxes (state income tax, sales tax, property tax, city income tax, school district income tax). And that compares unfavorably to other states. My guess is that a welfare recipient living in government subsidized housing pretty much pays the same tax in Ohio as they would in Indiana or Texas.
By Dave
September 19, 2010 2:49 AM | Link to this
The major issue with state and local tax is the internet’s destruction of revenue from sales tax. Sales that used to take place and require sales tax be paid now take place sans taxes. Maybe some people think this is a good thing, but these people are not very bright. Roads and such must come from somewhere, and the Fed is too busy with Federal problems to put extra cops in a bad spot of Dayton. Ohio really needs to nail down the nexus issues and then make our state a friendly place for internet commerce and rush to take advantage of the new banking rules. Neither of our governor candidates are close to on point with how to really improve Ohio.
By Jesse
September 19, 2010 1:03 AM | Link to this
Overall tax rate in Ohio is especially high if one considers the return on investment. The facts back up the statements by Mr. Kasich. Taxes and Union requirements have made Ohio all but impossible for manufacturing jobs, and prevailing wage laws (pushed by Unions) put those who want the work at an extreme disadvantage. Do not blame job loss on businesses who have to make a profit for share holders (mostly pension plans and the like). Place the blame correctly on unionization and high taxes.