Governor Strickland Gets It
Wednesday, September 23rd, 2009 By Marc KilmerWhile I have issues with some of Governor Strickland’s decisions, he hit the nail on the head with his recent comments about tax increases, as quoted by Gongwer News Service($):
Maybe in their ivory towers a tax increase seems like something that would not be painful or harmful. I have said that I think a tax increase could – could – have the effect of deepening the recession and causing it to last longer. And I continue to hold to that belief….I think those who believe that higher taxes are the answer to Ohio’s economic needs and economic recovery are flat out wrong.
He said this in response to Senator Voinovich’s glee over the idea that the slots plan may be killed and thus taxes may have to be raised. As the governor told the Columbus Dispatch:
If I were to have to ask the people of Ohio, as they are struggling to survive in this economic recession, to give even more of their resources to the state, it, in my judgment, would not be the best course of action…. [Senator Voinovich] has a right to his opinion, but he is not the governor. I’m the governor, and I will make the decisions that I consider in the best interest of the state of Ohio.
In this case, the people of Ohio are lucky that Strickland, not Voinovich, is governor. Strickland understands that taxes take the resources of Ohioans and that there are negative economic consequences from raising taxes. Sure, Ohio would be in a better position if Strickland had clamped down on spending more in his first few years in office, but he deserves credits from all fiscal conservatives for holding the line on tax increases.
September 24th, 2009 at 8:10 am
Since I seldom agree with Voinovich and even less with Strickland I must confess that on this one I agree in part with both of them. The Senator is correct in opposing the Govenor in allowing slots against the will of the people (four times gambling has been defeated in popular votes) and the Govenor is right that higher taxes will hurt Ohio. Perhaps the answer is to reduce the size of Ohio’s bloated government and then reduce taxes. After all, Ohio already has one of the highest tax rates in the Union. But I do wonder how Govennor Strickland could claim he is against the people of Ohio paying more taxes when he wants to burden us with hundreds of millions of dollars in taxpayer funding for his railway project? The money to build and subsidize this fiasco must come from somewhere.
September 24th, 2009 at 1:19 pm
Geno, you’re exactly right. The answer to Ohio’s problems won’t come through gambling revenue or higher taxes. It will come from cutting spending and revamping the tax and regulatory system. I don’t expect these two things to happen under Governor Strickland, but I am glad to see he’s not in favor of raising taxes (let’s hope he continues this stance if he’s re-elected).
And you’re also right about the funding for passenger rail. The plan is that the hundreds of millions of dollars in start-up costs will be paid for by the feds. If that doesn’t happen, passenger rail won’t happen. But if the feds come through and pay the initial costs, the yearly subsidies (at least $17 million, likely more) will come from the state. Given the budget mess from this year, finding $17 let alone $17 million would be a challenge. Hopefully this will be raised by a reporter or during a gubernatorial debate next year.