Vote reform helps stall Ohio spending cap
By Toledo Blade, posted August 11, 2005
Vote reform helps stall Ohio spending cap Democrats call delay to 2006 a political ploy By JIM PROVANCEBLADE COLUMBUS BUREAU August 10, 2005COLUMBUS - The lines have been drawn for a battle in courtrooms and at the ballot box this fall with the control of Ohio government potentially at...
A Cure for Bad Tax Policy in the Buckeye State
By Wall Street Journal, posted July 26, 2005
A Cure for Bad Tax Policy in the Buckeye State By KENNETH BLACKWELL and ARTHUR B. LAFFER July 21, 2005; Page A11 COLUMBUS, Ohio -- In 1970, Ohio had one of the lowest tax burdens in the Union -- it now has one of the highest. As of 2005, the state's tax burden, as estimated by...
Gongwer Report of July 25, 2005
By Gongwer Legislative News Service, posted July 25, 2005
Gongwer Report of June 24, 2005
By Gongwer Legislative News Service, posted June 27, 2005
INITIATIVE UPDATE: STATE SPENDING LIMIT, ELECTION REFORM BACKERS REPORT GOOD PROGRESS TOWARD FALL ISSUES; OTHER GROUPS SEE MIXED RESULTS Citizens for Tax Reform, a group led by Secretary of State J. Kenneth Blackwell seeking a constitutional amendment to limit state spending,...
By Wall Street Journal, posted May 12, 2005
Ohio's Dependence on Foreign Trade
By Joseph Zoric, posted September 13, 2004
Walk through any large department store in Ohio and you'll find goods produced from around the world. The shelves of our stores are full of goods shipped from Mexico, Canada, Japan, China, Malaysia, Italy and numerous other countries. It seems that everything we buy is produced somewhere other than...
By Joseph Zoric, posted September 13, 2004
Since its creation in 1993, the North American Free Trade Agreement (NAFTA) has been widely criticized by politicians and labor leaders as harmful to the U.S. economy in general and to manufacturing and farm labor in particular. The most famous pronouncement came from presidential candidate...
Why Ohio Needs a TEL Amendment
By Gene Fox, posted September 8, 2004
The Ohio secretary of state's recent appeal for a state constitutional amendment to restrict state government spending supports results of a statewide survey among registered voters commissioned earlier this year by The Buckeye Institute: Ohioans Support Spending Limits.
Support exists for proposal to cut taxes, spending
By Gene Fox, posted August 30, 2004
The Ohio secretary of state's recent appeal for a state constitutional amendment to restrict state government spending supports results of a statewide survey among registered voters commissioned earlier this year by The Buckeye Institute: Ohioans Support Spending Limits
Getting the Job Done with a TEL
Ohio Secretary of State J. Kenneth Blackwell recently announced his support of a constitutional amendment to limit taxing and spending. The proposal, called a Tax and Expenditure Limitation, or TEL, involves reining in legislators and public officials who seem unwilling, or unable, to maintain a grip on the state budget. However, those unfamiliar with TELs may be uncomfortable voting to restrict legislative authority through a statewide ballot. A quick overview of this tool, though, reveals just how beneficial a TEL could prove for Ohioans.
A single word can strike fear into the hearts of those on the receiving end of special government protections: competition. For most businesses, competition is part of doing business, a factor that keeps downward pressure on prices and forces companies to consider the consumer's reaction to every business decision. Not so if you are a wine wholesaler in Ohio. Ohio wholesalers benefit from trade restrictions that result in fewer choices and higher prices for Ohio wine consumers.
Ohio Fills Budget Holes With Tobacco Funds
Following a major lawsuit against tobacco companies in the 1990s, 46 states agreed on a settlement that would result in annual payments meant to offset the burden tobacco use placed on the health care system. While there are no restrictions on how the funds can be used, the assumption was that since the states had sued to recover health care costs, the settlement money would be allocated to mitigate such expenses in the future.
Unions Ignore Industry Changes At Their Own Peril
By Robert Lawson and Matthew Hisrich, posted April 29, 2004
They say that those who do not learn from the past are destined to repeat it. Right now, the U.S. telecommunications industry is undergoing dramatic technological and regulatory upheaval. As the streets of Columbus fill with angry union protestors and retirees for SBC's annual meeting this week, it is difficult not to draw comparisons with other domestic industries that have faced similar difficulties. Some have done well while others have floundered.
By Robert A. Lawson, Ph.D., posted April 29, 2004
Ohio is one of only thirteen states that levies an estate or inheritance tax of its own. The remaining 37 states "piggy back" on the federal estate tax by taxing only up to the amount of the federal estate tax's "state death tax credit." In these states, the estate tax is essentially free to the taxpayer since it merely moves some of the federal estate tax liability to the state level while leaving the total estate tax bill unchanged.
Why Ohioans Should Care About Stock Options
The news hasn't been good for Ohio businesses lately. While it is true that high taxes have stood in the way of this state's economic growth for decades, in recent years the share of Ohio's taxes paid by businesses has increased. [1] In 2003, the Small Business Survival Committee ranked Ohio just...
High Tech Science Occupations in Ohio, 2001
By Robert Premus, Ph.D., posted March 24, 2004
Studies have documented a positive link between high technology activities and regional economic growth. These studies also point out the need for a knowledge infrastructure such as an ample supply of computer specialists, engineers and scientists to support high technology growth. Also...
High Tech Engineering Occupations in Ohio, 2001
By Robert Premus, Ph.D., posted March 24, 2004
Studies have documented a positive link between high technology activities and regional economic growth. These studies also point out the need for a knowledge infrastructure such as an ample supply of computer specialists, engineers and scientists to support high technology growth. Also...
Ohio's Approaching Fiscal Storm
When the news hit, no one was really surprised. Ohio's 85 and older population is rising, while its 15-44 age bracket heads for greener pastures elsewhere. [1] But while the census numbers made for one-day headlines, the implications for Ohio's future received scant attention. Taking a step...
Job Creation Through Tax Reform
By Nathan Dolezal, posted March 5, 2004
In his most recent State of the State Address, Governor Bob Taft said that one of the most "profound issues facing Ohio" is "to transform Ohio's economy to create more high paying jobs." [] The Buckeye Institute study Tax Reform for Ohio's New Millennium contains three possible plans to promote...
By Samuel R. Staley, Ph.D., posted February 25, 2004
What Should State Policymakers do? 86% of Ohioans believe lawmakers should focus on spending restraint rather than increasing taxes to address future budget deficits; 79% of Ohioans would support a proposal to limit state spending to the inflation rate; 60% of Ohioans would support reforms...
By Douglas L. Oliver, posted February 13, 2004
Did you make any Internet or catalog purchases last year? Did you vacation or shop in a state with different sales tax laws than Ohio, such as New Hampshire (no sales tax) or Pennsylvania (no sales tax on clothes)? If you answered yes to either of these questions then you need to take care when...
The Economics and Ethics of Publicly Funding COSI
By Robert A. Lawson, Ph.D., posted February 13, 2004
COSI is considering asking for a property tax levy in Franklin County to help finance its operations. In exchange, Franklin County residents would be able to visit COSI for free. The economic case for funding COSI collectively through taxes is very weak and voters should think twice before...
Ohio Businesses Bear The Majority of Recent Tax Increases
As Ohio policymakers try to stem the tide of job losses and turn the state's economy around the detrimental impact of high taxes should be considered. A recent study performed by Ernst and Young for The Council on State Taxation shows exactly how tax increases over the past three years break...
Technology Has The Power To Streamline Government
Like stockholders in a corporation, taxpayers expect accountability and efficiency from the government agencies they support. Indeed, often it is simply assumed that officials are using scarce resources to their best ends. But is this always the case? As the state and local governments of Ohio...
Mandatory Licensing of Dieticians
By Casey Burnett, posted December 10, 2003
The Ohio Board of Dietetics (OBD) is responsible for the mandatory licensing and regulating of all Ohio practitioners of dietetics. The mandatory licensing of dietetics has come under scrutiny from some Ohio policymakers who are questioning the necessity of mandatory licensing. In an effort to...
Ohio Capital Gains Cut Move In The Right Direction
By Joshua C. Hall and Robert A. Lawson, posted December 9, 2003
House Bill 258 would, over time, eliminate the taxation of capital gains and would return the Ohio residency test to the pre-1994 level. The Buckeye Institute has a long record of advocating tax reform. There are two main themes running throughout our research and advocacy in this...
By Ralph Frasca, posted December 1, 2003
Economists are fond of the saying, "There’s no such thing as a free lunch." So when we turn on the evening news to hear some politician calling for increases in government spending for daycare for single mothers or free drugs for the elderly or whatever, economists tend to be the first ones...
Should Electronic Slot Machines Fill the Budget Gap? -- An Assessment of Ohio Voter Attitudes
By Samuel R. Staley, Ph.D., posted November 20, 2003
Ohio’s budget crisis has prompted elected officials in Ohio to consider various approaches to tax reform. Unfortunately, these discussions have occurred without a gauge of popular support. This report is the first of two by The Buckeye Institute that assesses Ohio citizen concerns about tax...
By David J. Owsiany, posted November 17, 2003
Imagine you are a company that has been in business for decades and employ hundreds or even thousands of workers. You have never produced or sold any products containing asbestos. Today, you find yourself mired in litigation and on the brink of bankruptcy because you have paid out...
Bring Automobile Insurance Down by Bringing Auto Choice to Ohio
Recent reports show that Ohio’s auto insurance rates are below average for the nation. [1] While this is certainly good for Ohioans, this news nonetheless masks a larger trend — rising premiums nationwide. The burden of this insurance, especially in a state such as Ohio with mandatory...
Will the "Third Frontier" Create High Tech Jobs?
The stated purpose of the 10-year, $1.6 billion Third Frontier Project is “to create high-paying jobs for generations of Ohioans through the expansion of Ohio's high-tech research capabilities and promotion of start-up companies.” [1] In practice, this seems to involve handing out...
Government Ownership of Companies is a Very Bad Idea
By Robert A. Lawson, Ph.D., posted October 23, 2003
Americans may have become accustomed to ever increasing taxes and regulations that control every nook and cranny of our lives, but we are not quite ready to allow the government to own companies outright.[1] And yet, this is precisely the situation that the ongoing Third Frontier program invites...
Eminent Domain Abuse in Lakewood
By Jen Melby, posted September 30, 2003
Seventeen homeowners in the Cleveland suburb of Lakewood are fighting to save their homes from the bulldozer. The culprits: their own city politicians. Lakewood officials claim that they need to redevelop the area to shore up the tax base, and they will not take no for an answer....
By Samuel R. Staley, Ph.D., posted September 24, 2003
Economic Development and the High Tech Sector Studies have shown that high tech occupations offer higher wages and more long-term job security than other occupations.[1] Getting the results of basic science and other sources of new knowledge into the design, production and distribution of...
Government Budgeting Based On Core Functions
By Bob Williams & Lynn Harsh, posted September 23, 2003
In 2003, Ohio state officials fell prey to traditional budget solutions and raised taxes to address the state’s budget deficit. But there was another way. Conventional thinking says lawmakers must adjust the current budget for inflation, add caseload increases, splice in a few new...
Ohio could alleviate its budget woes by outsourcing
By Joshua C. Hall, posted September 19, 2003
Outsourcing, competitive bidding and privatization, although controversial, well may emerge as keys to bringing the state budget under control. Outsourcing, in particular, is likely to become popular on both sides of the aisle, as elected officials grapple with practical ways to control spending....
Regulations Not Needed - Remedies Currently Exist for Protecting Consumers
By C. Michael Piacentino, J.D., posted August 21, 2003
Thank you for the opportunity to address you in support of House Bill 188. I am an attorney in private practice in Marion. I have been a solo practitioner for over 30 years. I served as Assistant Law Director for the City of Marion for 9 years and I was a member of the Governor’s Select...
Reforming Ohio's Tax System for the 21st Century
By Robert A. Lawson, Ph.D., posted August 18, 2003
With economic and population growth in Ohio lagging behind the nation, it's about time that Ohio take a serious look at its outdated system of taxation. In short, we need a 21st Century tax code for a 21st Century economy. In the cash-oriented 19th Century with primitive accounting...
The Wright Brothers, Patents, and Technological Innovation
By John E. Murray, posted August 13, 2003
We remember the Wright brothers for their skill at invention, but luckily their vision of the aircraft industry did not take off. In December 1903 the Wright Flyer made its fateful flight over the sands of Kitty Hawk. Unsatisfied with their achievement, the Wrights continued to work...
Discussion of the recent budget passed by Ohio lawmakers has focused on the temporary 20 percent increase in Ohio’s sales tax. The sales tax increase, however, is not the only way that Ohio policymakers are reaching into taxpayers’ pocketbooks. For example, the new budget contains over 150...
Decentralizing Federal Employment: Feasibility and Impact on Ohio Cities
By John P. Blair, Adrian L. Moore, and Geoffrey F. Segal, posted July 26, 2003
Introduction The events of September 11, 2001 and the subsequent War on Terrorism may have prompted a rethinking of the federal government’s role and function. The attack on the Pentagon, in particular, demonstrated the vulnerable nature of many federal jobs and facilities. These events reinforced...
Decentralizing Federal Employment: Feasibility and Impact on Ohio Cities: Q&A
By John P. Blair, Adrian L. Moore, and Geoffrey F. Segal, posted July 26, 2003
1. Why is the federal workforce an issue of concern? The federal government is having a difficult time replacing its human capital. Today, the average federal employee is 45 years old, and more than half the workforce is between 45 and 69 years old. By 2004, nearly one-third of the federal...
Changes in Fees as a Result of H.B. 95
Barbers, boxers, fishermen, funeral directors, hunters and pilots - a comprehensive list of who pays more and just how much they will be paying.
Upgrading U.S. 24 - Downgrading Ohio's High-tech Companies
By Jen Melby and Matthew Hisrich, posted July 19, 2003
Ohio’s high-tech manufacturing industry in Defiance is under attack by the Department of Transportation’s plans to upgrade and re-route U.S. 24 between Fort Wayne, Indiana, and Toledo, Ohio. For years the two-lane state road has been a menace and frustration to drivers. With approximately 40...
Government and Occupational Licensure
By Joshua C. Hall, posted July 13, 2003
Occupational licensing, of whatever kind, often represents a conflict between good politics and good economics. Politicians naturally want to enact laws to "protect the public" from unqualified practitioners of various crafts. At my last count, there were over 40 occupations in Ohio with...
Comparable Worth: Comparable to What?
By Rebecca A. Thacker and Joshua C. Hall, posted July 3, 2003
In 1963, John F. Kennedy signed the Equal Pay Act into law. The Equal Pay Act made it illegal for employers to pay unequal wages to men and women employed in the same job with the same characteristics, such as longevity and performance. At the time of its passage, the median woman earned 58...
Statehouse Leaders Not "Forced" to Raise Ohioans Taxes
State legislators are spinning Ohioans a tale about the need to increase taxes to balance Ohio’s budget. Their story begins by showing that Medicaid and K-12 education are the only two areas of the budget that are growing. Since Medicaid and K-12 education is just too important to cut, they...
Are Ohio's Cities Competitive?
By Jen Melby, posted June 12, 2003
Ohio’s three major cities are failing to effectively compete with the nation’s largest cities or their suburbs. Out of 44 American cities, The Reason Public Policy Institute ranked Columbus 20th, Cleveland 29th, and Cincinnati 30th in terms of efficiency.[1] The study cited poor fiscal policy as a...
Texas and Washington Hold the Line on Taxes
Despite facing challenging budgets and tight economies, state policymakers in both Texas and Washington have reached budget agreements that call for no new general tax increases. In Washington, legislators agreed on a plan that eliminates a $2.6 billion spending gap primarily through the...
States have to spend money to get money. Apparently that’s the message from Washington D.C. The tax cut recently signed into law by President Bush is expected to provide states with a one-time windfall of cash to help assist with budget crises. But, there’s a catch: ...
By Lee Coppock, posted June 1, 2003
As the summer approaches, Ohio motorists are beginning to watch gasoline prices even more closely. Traveling plans rely heavily on gasoline prices, and the complaining has already begun across the country about the possibility of higher prices at the pump this summer. In Hawaii, the state...
Despite Wine Glut, No "Two Buck Chuck" for Ohio
By Jen Melby and Joshua C. Hall, posted May 30, 2003
Trader Joe’s, a self-described “unique grocery store” that originated in California, has recently begun expanding into Ohio with stores in Dublin and Kettering. In addition to selling gourmet foods, Trader Joe’s is known for offering a selection of unique, reasonably priced wines, some offered...
Tax Expenditures, Economic Efficiency and Improving Budgetary Review
By Joshua C. Hall, posted May 15, 2003
Governments, for the purpose of budgeting, have always tried to compile in one document the sum of government spending. Historically, this has been done through a traditional budget that details a state’s incoming revenues and direct outlays. In the 1960s, Harvard law professor Stanley...
The Case for a Supermajority to Raise Taxes
By Robert A. Lawson, Ph.D., posted May 8, 2003
HJR 7 proposes a constitutional amendment that would require increases in state taxes be approved by a two-thirds "supermajority" of the legislature. The Buckeye Institute has a long record of advocating for a smaller state government, and a supermajority requirement should constrain the...
The Flat Tax, Economic Efficiency, and Ohio's Competitiveness in the Global Marketplace
By Robert A. Lawson, Ph.D., posted May 8, 2003
HB 112 replaces the current Ohio income tax with a "flat tax" and results in an income tax cut for all Ohioans. The Buckeye Institute has a long record of advocating both flatter and lower income taxes.[1] Therefore, HB 112 is consistent with our long-held position.[2] Ohio’s current income...
Dividend Tax Cut Increases Incentives for Business Investment
By Joshua C. Hall, posted May 8, 2003
President George W. Bush’s 2003 economic growth and tax relief plan would, among other things, eliminate the double taxation of dividends. Opponents of this proposal typically use two arguments to justify their stance. They argue that this change affects mainly the wealthiest Americans and that...
If You Tax Them Will They Leave?
By Robert A. Lawson, Ph.D., posted May 1, 2003
The Federation for Community Planning (FCP) is a Cleveland-based nonprofit that “serves as a critical link between health and social issues and possible solutions.” In a recent article, FCP’s David Ellis argues that Ohio’s punitive income tax is in fact not linked to Ohio’s well-known out-migration...
Third Frontier Unlikely To Revitalize Ohio's Economy
By Douglas Oliver, posted May 1, 2003
There seems to be a unanimous chorus coming from Columbus that Governor Taft’s Third Frontier initiative is based on sound principles. Taft’s Third Frontier is a ten-year, $1.6 billion state program that is supposed to “to create high-paying jobs for generations of Ohioans through the expansion of...
West Side Business Center Shows Problems with Government Development
Two things are certain when state and city governments become developers: large sums of taxpayer money will be spent and, at the end, another revitalization project will be needed. A case in point: Columbus’s Sullivant Gardens. Sullivant Gardens, built in 1941, was one of the Columbus...
Minnesota and Kentucky Examine State Vehicle Spending
Budget deficits are forcing states to take a hard look at state spending. One of the latest areas to fall under scrutiny is whether or not it is a wise investment of taxpayer dollars to have the state purchasing and maintaining a large fleet of vehicles. For example, Minnesota is looking to trim...
Balanced Budget Sets Stage for Historic Battle
By Samuel R. Staley, Ph.D., posted April 9, 2003
Angst permeates the halls of the Statehouse these days. Most people know about the projected $4 billion deficit embedded in the next budget. What they may not know is that Ohio’s balanced budget requirement is setting the stage for a historic clash between two fundamentally different approaches to...
Minor League Ballpark, Major League Subsidies
By Aengus Barry, posted April 3, 2003
Since 2001, the State of Ohio has paid $850,000 towards the cost of a new stadium in Eastlake, a suburb of Cleveland.[1] The stadium will be home to the Lake County Captains, a Class-A affiliate of the Cleveland Indians. The construction cost of the stadium is estimated to be around $19.5...
Missouri Lawmakers Propose Unique Answer To Question Of What To Cut
Facing a budget crisis and a Governor who wants to raise taxes, State Representatives in Missouri recently proposed granting state departments lump sum reduced budgets. The departments would then need to determine spending priorities.[1] “We are giving them a framework and saying,...
Banking on the Future - and Going Bust
The current budget shortfall has led to cuts in various government programs. Inevitably, this results in news stories about how these cuts are hurting Ohio. For example, while announcing cuts to various development programs including the Technology Action Fund, Ohio Governor Robert Taft said,...
Democratic Governor Bill Richardson of New Mexico recently enacted a series of tax cuts in his state, declaring, “New Mexico is open for business.” [1] Richardson, former Energy Secretary under the Clinton administration, expressed pleasure with the broad support exhibited for the measure. In a...
Are We Getting "Gouged" at the Pump?
By Lee Coppock, posted March 10, 2003
Retail gasoline prices across the U.S. are now climbing near their highest level in two years. In fact, gas prices are above their post-September 11, 2001 levels. As a result, federal and state politicians are beginning to fret over the potential for “price gouging” behavior by gasoline...
Ohio's International Trade Division
By Robert Lawson and Matthew Hisrich, posted March 7, 2003
The International Trade Division (ITD) of the Ohio Department of Development was created to promote Ohio products overseas and encourage foreign investment in the state. Along with its Columbus operations, the ITD has offices in Brussels, Belgium; Tokyo, Japan; Hong Kong, People's Republic of...
Problems Arising from the Double Taxation of Dividends
By Joshua C. Hall, posted March 3, 2003
The current federal tax code discriminates against the paying of dividends by taxing dividends twice – first at the corporate level and then at the individual. President Bush has proposed that this anti-savings-and-investment component of the federal tax code be eliminated. Taxing savings...
Ten Ideas For Improving Ohio's Fiscal Health
By Lawrence Reed and Joshua Hall, posted March 1, 2003
Ohio Governor Bob Taft and the General Assembly are grappling with a projected $4 billion dollar deficit over the next biennial budget. Deep spending reductions will be required to meet the near-term shortfalls in revenue, but that also raises the question: What can be done to minimize the chances...
What Does The National Governors Association Do For Ohio?
By Aengus Barry, posted March 1, 2003
In recent years, Ohio taxpayers have spent around $170,000 annually in dues so that Ohio’s chief executive can be a member of the National Governors Association (NGA). Although the NGA has temporarily reduced Ohio’s dues in light of the state’s budget crunch, Ohio should consider withdrawing from...
By Aengus Barry, posted February 27, 2003
The “Ohio Proud” program identifies and promotes agricultural products grown in Ohio.[1] In the last five years the Ohio Department of Agriculture has spent over $1.5 million on this program. Their fiscal year 2003 budget is $232,924, an increase of 2.4 percent over 2002.[2] This...
Budget Restraint Proposed in North Carolina
By Joshua C. Hall and Matthew S. Hisrich, posted February 26, 2003
North Carolina is facing a budget shortfall similar to the one facing Ohio, although not of the same magnitude. Democratic Governor Mike Easley, weary of this reoccurring problem, has crafted a long-term solution to help prevent future budget shortfalls. Put succinctly, his proposal...
By Robert A. Lawson, Ph.D., posted February 25, 2003
There has been a lot of talk about taxes lately. Facing a $720 million deficit over the next four months, the General Assembly recently decided to forgo new taxes in favor of spending cuts. Although tax increases have been tabled for now, many politicians have their eyes on increasing...
The Distributional Effects of a Flat Tax
By Lowell E. Gallaway, posted February 21, 2003
Whenever the issue of a flat-rate tax is discussed, the primary argument against moving from our progressive tax-rate structure to the proportionality of the flat tax is that it would shift the burden of taxation away from the upper-income groups and towards the low-income sector of the population....
Ohio's Rail Development Commission
Ohio’s 121st General Assembly authorized the creation of the Ohio Rail Development Commission (ORDC) in 1994.[1] This independent state agency has grown significantly in recent years. For fiscal year 2002 the agency received a 35 percent funding increase. This bumped the commission’s budget...
A "Tax Me More Fund" for Ohio?
By Matthew S. Hisrich and Joshua C. Hall, posted February 19, 2003
Budget shortfalls and their corresponding calls for tax increases are not unique to Ohio. Arkansas, for example, faced a budget shortfall in 2001. When a tax increase was suggested as a solution, Arkansas Governor Mike Huckabee created the “Tax Me More Fund” in response. The “Tax Me More Fund”...
Ohio Dietetics Board Hears Most Complaints
According to research from the Colorado Department of Regulatory Agencies, Ohio’s Board of Dietetics investigated the greatest number of complaints from 1996-2001. The Ohio Board of Dietetics investigated an average of 142 complaints per year. This was significantly higher than any other state reviewed by Colorado’s Department of Regulatory Agencies.
By Joshua C. Hall, posted December 1, 2002
Historian Arthur M. Schlesinger, Sr. conducted the first modern ranking of U.S. Presidents in 1948. He surveyed 55 historians and asked them to rank all U.S. presidents up until that time on a scale from “great” to “failure.” In that first survey, presidents such as...
Ohio's Proposed Economic Standards
By G. Dirk Mateer, posted October 30, 2002
Economic ignorance is a serious problem facing our country. A 1999 survey by the non-partisan National Council on Economic Education (NCEE) found that 40 percent of American high school students have not been taught economics in school. This is in spite of the fact that 96 percent of American...
Pro-Steel Tariff Studies Miss the Mark
By Joseph Zoric, posted October 10, 2002
"Free trade, one of the greatest blessings which a government can confer on a people, is in almost every country unpopular."Thomas Babington, Lord Macaulay 1824 In two articles on the impact of President Bush’s steel tariff program, Professor Peter Morici of the University of Maryland...
Can Ohio Learn From Colorado's Economic Success?
By Jeff Williams, posted September 1, 2002
Those who are concerned about Ohio’s ability to create new high-paying jobs should look to the example being set by Colorado. From 1990 to 2000, Colorado’s economy was a job-creating dynamo. Colorado went from approximately 1,655,000 full-time jobs in 1990 to 2,363,000 jobs in 2000 — a gain of 43...
Economic Freedom Needed To Alleviate Poverty
By Robert A. Lawson, Ph.D., posted July 1, 2002
Both as an ideology and as a practical system, communism has utterly failed to deliver the goods. Eastern European nations are now rushing to become members of the European Union, and China is undertaking market-oriented reforms. Cuba and North Korea stand as the last remaining communist...
Should Out-of-State Master's Students Come Before Ohio Undergraduates?
By Douglas L. Oliver and Joshua C. Hall, posted July 1, 2002
Roderick Chu, Chancellor of the Ohio Board of Regents (OBOR) has presented evidence that too few of Ohio’s work force have a collegedegree and has set a goal of ensuring that every Ohioan has access to quality higher education. The OBOR is seeking to increase Ohioans access to college by...
Ohio's Wine Prices Are Too High
By Eric Fisher, posted June 1, 2002
I moved to Ohio to teach economics at Ohio State about ten years ago. Before that, I was on Cornell University’s faculty, and my wife was a professor at Ohio University. During those long drives from Ithaca to Athens, I grew to appreciate the good roads in Ohio. Leaving the...
Cigarette Taxes Are Not The Answer
By David J. Owsiany, posted April 1, 2002
Some members of the Ohio General Assembly are proposing a 50-cent per pack increase in the cigarette tax in order to help meet the projected state budget shortfall of $750 million in 2003. A close examination of this proposal reveals that increasing taxes on cigarettes may not generate the...
Avoiding the Economic Pitfalls Ahead
By James W. Coons, posted March 19, 2002
On March 19, 2002, Jim Coons, former senior vice-president, chief economist, and director of balance sheet management at Huntington National Bank, was the keynote speaker at the Buckeye Institute Spring Policy Reception in Columbus, Ohio. Mr. Coons gave an overview of the current state of the economy and warned against four potential policy pitfalls that could hinder economic recovery. Coons’ remarks provide an excellent primer for policymakers on the dangers of overreaching into the free market. These remarks should be carefully considered by anyone in state and federal government involved in fiscal and monetary policy. Coons’ policy prescriptions are reprinted in this Policy Brief as an educational tool to help policymakers, media, and citizens understand the policy pitfalls that might endanger the economic recovery.
Steel Tariffs Could Harm Ohio's Economy
By Joseph Zoric, posted March 1, 2002
The high tariffs on foreign steel recently enacted by President Bush and supported by the majority of Ohio’s politicians could do substantial harm to the very people that those politicians represent. Almost before the ink was dry on the President’s decree, foreign countries that buy American goods...
Ohio's Taxes Should be Simpler, More Efficient
By Joseph Zoric, posted February 1, 2002
Over the past ten years, spending and taxation in Ohio have increased at a much faster rate than in our neighboring states. Over this period, the state’s general revenue fund expenditures rose by 104 percent. Kentucky, Indiana, West Virginia and Michigan all had lower rates of increase. This means...
"Third Frontier" Is A New Attempt At An Old Idea
By Robert A. Lawson, Ph.D., posted February 1, 2002
With the loss of Communism as a viable ideology, we might have hoped that the allure of central economic planning was gone forever. But old lessons die hard. Gov. Bob Taft, apparently impressed with the wondrous results of economic planning in the Soviet Union, China, Cuba and elsewhere, wants to...
Ohio is Right to Settle Microsoft Case
By David J. Owsiany, posted November 1, 2001
For the last three years Microsoft has been defending itself in antitrust litigation brought by the U.S. Justice Department and eighteen states, including Ohio. In early November, the Justice Department reached a settlement with Microsoft which nine states, including Ohio, immediately...
A Tax Increase By Any Other Name
By Joshua C. Hall, posted November 1, 2001
In early November, members of the General Assembly voted for passage of a bill that would balance Ohio’s budget by, among other things, eliminating several “tax expenditures.” “Tax expenditure” is budget terminology for what some pejoratively call “tax loopholes” – tax provisions that are presented...
By Robert A. Lawson, Ph.D., posted November 1, 2001
The Ohio estate tax is one of the reasons that Ohio is at a competitive disadvantage in attracting and keeping entrepreneurs and investment. Congress recently passed legislation to phase out the federal estate tax. Ohio should do the same with its own estate tax. Consider the following...
By Robert A. Lawson, Ph.D., posted October 1, 2001
Suppose you were browsing through your local grocery store and discovered that green beans were on sale for just 50 cents per pound. Since you’re a green bean lover, you naturally decide to purchase a few handfuls. Now let’s imagine that the green bean lobby, not satisfied with the low price of...
Ohio Ranks Near Bottom of Small Business Index
In a recent assessment of major government costs imposed on small businesses, Ohio ranks fortieth of the fifty states and the District of Columbia.
By David J. Owsiany, posted July 1, 2001
Recent data suggests that Ohio’s policy makers are heading in the wrong direction with regard to tax and fiscal policy. Over the last decade, policy makers have refused to enact significant reductions in tax rates and have been on a wild spending spree. Ohio University economist and Buckeye...
Long-Run Versus Short-Run Budget Considerations
By Lowell E. Gallaway, posted May 20, 2001
Gallaway testified before the Ohio House of Representatives Finance and Appropriations Committee concerning the present budget shortfalls being experienced by the state government. Dr. Gallaway argued that the state suffers from a severe spending problem and that a longterm overhaul of the way the state spends taxpayer dollars is necessary to prevent a similar budget “crisis” in the future. The text of his address is contained in this Policy Brief.
Ohio's Corporate Welfare: Stealing from the Taxpayers to Save Big Steel
By Joseph Zoric, posted March 20, 2001
Ohio Governor Bob Taft went on a "fact finding" mission earlier this year where he met with workers and executives from several of Ohio’s largest steel companies.[1] His conclusion after these meetings was that the steel industry is in trouble and that income should be taken from Ohio’s taxpayers...
By Joshua C. Hall, posted March 1, 2001
President Bush has proposed that federal taxes on dividends be eliminated for most individuals. This proposal clears the way for better corporate governance, improved business health, more accurate stock valuation, and increased capital formation. Under current tax law, dividends are...
The top 50 percent of Ohio taxpayers paid 94 percent of all Ohio income taxes in 1998, compared to only 6 percent for the bottom 50 percent of tax filers.
Is Ohio Committing Economic Suicide?
By Richard Vedder, posted March 1, 2001
Recent layoffs in Ohio business are focusing renewed interest in the Ohio economy. How is it doing? Actually, very poorly. From 1990 to 1999, inflation-adjusted personal income rose 25 percent nationally, but less than 17.5 percent in Ohio; we rank in the bottom 10 states in the...
Taxes for visiting athletes take an unfair advantage
By Brandon S. Lynaugh, posted February 9, 2001
It's hard to argue that there is such thing as a fair tax, but it's easy to spot an unfair one. Apparently unsatisfied with the 2 percent city income tax they levy on the Blue Jacket player's salaries, Columbus City Council moved to tax visiting player's salaries in a resolution passed Dec. 11....
Stop Regulation Through Litigation
By David J. Owsiany, posted December 1, 2000
Last year, Robert Reich, President Clinton’s former Secretary of Labor, declared “Regulation is out, litigation is in. The era of big government may be over, but the era of regulation through litigation has just begun.” Recent developments show that Reich is right, and we all should be...
By David J. Owsiany, posted December 1, 2000
The recent decision of the United States Court of Appeals for the District of Columbia reversing the breakup of Microsoft should lead to an end of the litigation. The lawsuit, filed by the Justice Department and 19 state attorneys general, including Ohio Attorney General Betty Montgomery,...
By Richard Vedder, posted December 1, 2000
Governor Jim Rhodes was a giant among men. In many ways he reminds me of another figure of his era, Lyndon Baines Johnson. Born a year after LBJ, both came from poor rural counties in populous states, were highly ambitious, had a great sense of how to “read” people, and eschewed...
Private funding of Arena deserves its own cheers
By David J. Owsiany, posted September 18, 2000
Last weekend, the Nationwide Arena opened its doors to its first event, a concert by Faith Hill and Tim McGraw. In a few weeks, the Columbus Blue Jackets will commence its inaugural season as a National Hockey League team in the new arena. As a season ticketholder, I'll be there. The story of how...
U.S. govt. continues to burden Ohio and otherstates with mandates
U.S. government agencies have not assessed the effects of unfunded mandates on states despite executive orders and congressional legislation requiring them to do so, according to a recent General Accounting Office (GAO) report.
Occupational licensing and regulations strangle entrepreneurship
Over the last several decades, Ohio, like many states, has brought more and more occupations under the control of regulatory boards. In some cases the regulations are modest, but others impose arbitrarily strict rules, requiring thousands of dollars and hours of training to become licensed.
Ohio's income tax: end it, don't mend it
By James A. Damask, posted April 1, 2000
Question: Who pays more taxes: a medieval peasant or an Ohio taxpayer? Is that your final answer? If you guessed a medieval peasant, you won’t be joining us for the Million Dollar Question. In 1998, the average Ohio taxpayer paid more than 35 percent of her income in taxes.[1] The average medieval...
The False Premises of Antitrust Law
By David N. Mayer, posted February 1, 2000
The myth is that Microsoft is a monopoly. The truth is that the government - not the market - is the source of monopoly power, through licensing laws, franchises, tariffs and other legal devices that restrict entry into markets and shield businesses from open competition. Without such legal...
No, Virginia, there is no such thing as a "fair tax"
By Robert A. Lawson, Ph.D., posted December 13, 1999
I just bought a book from Amazon.com. State governments all around the country are afraid I might do it again. The book was $12 plus $3.95 for shipping and handling. I paid no sales tax — although by law I am supposed to get a form from the state and pay it myself. (Fortunately, the state...
By Larry Schweikart, posted November 1, 1999
Living in the midst of one of the greatest economic expansions of all time, with technological innovations like cell phones, unlimited Internet access, and powerful computers available to growing numbers of people, it is natural to assume that Ohio has made the transition to the high-tech...
Help workers and employers: Settle workplace lawsuits privately
By James A. Damask, posted September 1, 1999
The Ohio Supreme Court recently overturned a 1996 law aimed at reducing personal-injury lawsuits that originate in the workplace.[1] Ohioans should use the opportunity to reconsider how disputes between employees and employers can be resolved. Two solutions would be for employers and employees (1)...
Will Ohio prosper in the economy of the future?
By Richard C. Leonardi, posted July 1, 1999
Consider the following tidbit from history: In the 1920s, Ohio companies like Firestone, National Cash Register and Procter & Gamble were pillars of economic stability in the American economy. By 1929, per capita income in Ohio was a whopping 11% higher than the national average, which was only...
Growth slows, taxes rise in Ohio
Despite Ohio’s participation in the current economic expansion, the Buckeye State is lagging behind other states in economic growth and vitality, especially in terms of income and job growth.
By Stephen A. Baker, posted June 1, 1999
Got milk? If some dairy farmers have their way, getting it will be more expensive. Few consumers in Ohio have heard of the Northeast Interstate Dairy Compact, but if Ohio lawmakers sign-on to the agreement, consumers will pay higher prices for milk.[1] The legislation establishing the...
Ohio ranks near bottom third of states for economic freedom
A new study comparing economic freedom in all 50 states puts Ohio near the bottom third, making it one of the least hospitable states in the union for taxpayers and businesses.
State spending and taxes rise under Republican governors
State spending in Ohio has risen more under Republican governors than under the last Democrat governor, state budget reports show.
Other people's money: How tax cuts can relieve the burden of Ohio's budget surplus
By Richard C. Leonardi, posted March 1, 1999
Since budget surpluses are good for families and businesses, they must be good for state government, right? After all, a surplus indicates that we are "in the black" and paying our bills—perhaps even making a "profit," right? Wrong—on both counts. With respect to budget surpluses, there are few...
By James A. Damask, posted February 1, 1999
Is a myth worth $6 billion? Some Ohio electric utility executives think so. They want to tax consumers to pay for $6 billion of bad investments (like nuclear generators) that they made years ago. To justify consumers paying off these assets, power company executives claim that consumers made a...
Let Ohio public employees ride the bull market
By James W. Coons, posted January 1, 1999
Could the Dow Jones Industrial Average hit 10,000 this year? Possibly. But if it does, Ohio’s public employees would not see any benefit. That is because most public employees in Ohio are locked into traditional pensions that restrict career choice and limit retirement income. Private sector...
By Ron Kozar, posted December 1, 1998
There are some strange laws on the books, but one of the strangest was recently revisited by the Ohio General Assembly. It’s a regulation that requires African hair-braiders to attend cosmetology school for 1,500 hours – that’s nine months – before they can braid hair for a living. Repealing this...
Private prison firm held accountable by stock market
The recent experience of Corrections Corporation of American (CCA), a Nashville-based prison contractor that experienced a July prison escape, demonstrates that markets reward competency and punish failure.
Ohio ranks near bottom of small business index
In a recent assessment of major government costs imposed on small businesses, Ohio ranks forty-sixth of the fifty states and the District of Columbia.
Ohio income taxes rising faster than income
Ohio personal income tax revenues are rising faster than both personal income and weekly earnings, according to recently released data from the U.S. Bureau of Economic Analysis, the U.S. Bureau of Labor Statistics, and the Ohio Legislative Budget Office.
Ohio's sad legacy of antitrust: John Sherman to Betty Montgomery
By James A. Damask, posted June 1, 1998
Picture this: an upstart computer company comes under fire from the U.S. Justice Department for alleged antitrust violations. Its strident CEO – the highest-paid man in America – vigorously denies that his company forced customers to purchase the newest software package under a product...
Manufacturing jobs increase in right-to-work states, shrink in Ohio
Manufacturing jobs have grown in states with right-to-work laws and have shrunk in states with compulsory union laws, according to data provided by the Bureau of Labor Statistics.
Financing professional sports: Lessons from Columbus
By Samuel Staley and David Swindell, posted March 1, 1998
The scene was ever so familiar for Ohio voters. For five months in 1997, Franklin County residents were pummeled with a professional sports marketing blitz. New sports facilities were important for the economy. They were important for the community. The downtown sports complex, said...
Higher sales tax means fewer jobs, less investment for Ohio
By David G. Tuerck, posted February 1, 1998
Last March, the Ohio Supreme Court ruled that funding for poorer school districts must be brought closer to the statewide average. Many state policymakers believe this requires additional education spending of about $1 billion from state rather than local sources. Ohio lawmakers...
Youngstown and the future of private prisons in Ohio
By Samuel Staley and Adrian Moore, posted January 1, 1998
The escape of six inmates from the privately owned and operated prison in Youngstown last July was a wake-up call for Ohio policymakers. The immediate, emotional reaction of some was to call "for the immediate closure of the facility." The long-term lesson of Youngstown, however, may prove to be...
Ohio deserves electricity freedom
By Robert A. Lawson and James A. Damask, posted January 1, 1998
The idea that there can be only one electric company from which to choose is so ingrained that few of us can imagine it any other way. But soon Ohio consumers may have a choice. Four bills are before the Ohio legislature, all of which advertise that they will "deregulate" electric utility...
Welfare caseloads drop while human services budget increases
As state welfare reforms take hold and the economy remains strong, fewer poor people are looking to government for financial assistance. These gains, however, have not translated into lower state spending on some key social programs.
The "Dos and Don'ts" of Competitive Contracting: Cleveland, Cincinnati and Indianapolis
By Jeff Williams, posted October 1, 1997
Across the country, financially strapped cities are looking to competitive bidding to reduce costs and improve the quality of public services. Take Indianapolis. The acknowledged national leader in competitive bidding, Indianapolis now saves its citizens about $30 million per year by bidding...
Governor's state budget grows faster than inflation and economy
The two-year budget submitted to the Ohio General Assembly by the Governor proposes spending increases that exceed expected inflation rates and projected economic growth. The Administration's budget recommends spending $36.1 billion over the next two years through the State's General Revenue...
Competitive contracting projected to save Indianapolis almost $200 million
An ambitious program to improve the quality and efficiency of public services may net Indianapolis citizens almost $200 million in savings by the year 2002. In 1992, Indianapolis embarked on one of thenation's most ambitions programs to reinvent local government. After four years, the results of...
By Samuel Staley & Robert Lawson, posted March 1, 1997
Many people believe Ohio’s income tax system is fair because it is progressive. After all, people earning higher incomes pay higher tax rates. Many people, however, may not realize that the system unfairly penalizes most Ohio families, particularly lower-income families. It does this by...
Restrained State Spending Holds Key to Economic Growth
By James W. Coons, posted February 1, 1997
State lawmakers are engaged in the challenging task of forging a balanced budget. The effort involves many difficult choices that will require officials to balance a variety of objectives. One objective that merits careful attention is the health of the Ohio economy. A balanced budget...
Local regulation stifles inner-city entrepreneurship in Ohio cities
By Samuel R. Staley, Ph.D., posted January 1, 1997
Suppose you live in an inner-city neighborhood. You're down on your luck. You were just laid off, and new job prospects are scarce without a college degree or technical skills. What do you do? You come up with a great idea: your car could become a money maker! You can use...
Prevailing Wage Law Costs Ohio Taxpayers Millions
By Jeff Williams, posted November 1, 1996
For those unfamiliar with Ohio’s prevailing wage law, here’s the way it works: Every time state or local government funds a construction project over $50,000, by law it must pay above-market wages. Every time an Ohio government remodels or repairs its buildings, if the cost exceeds...
Can Ohio Cities Become Contract Cities?
By Joseph Zoric, posted September 1, 1996
Spending by city governments has increased dramatically in recent years. From 1988 to 1993, for example, expenditures by local governments in Ohio grew by 35.7 percent, almost 14 percentage points faster than the inflation rate. This puts pressure on cities to either raise taxes to...
State Employee Wages Grow Faster than Private Sector
By Greg Delemeester, posted July 1, 1996
State government in Ohio is getting bigger, not smaller, despite 6 years of a Republican governor and 1 ½ years of a conservative legislature. Despite recent successes in slowing its rate of growth, state spending is still increasing at twice the inflation rate and about 1 percent faster than...
Cutting Taxes Best Way Out Of Business Incentive Game
By Samuel R. Staley, Ph.D., posted February 1, 1996
The Ohio economy has fared well since the economic slump of the early 1990s. Ohio’s job growth out-paced the nation in 1994, the unemployment rate is currently one of the lowest in the nation, and the state ranked first in the number of new and expanded facilities from 1992-94 according to...
Sports stadiums can be privately financed
By David Swindell, posted September 1, 1995
Almost every major city in Ohio is actively considering proposals for taxpayer-funded sports stadiums. The most ambitious plans may be Cincinnati's where the county government has agreed to raise $540 million in order to tear down Riverfront Stadium and build two new facilities for both the...
Ohio's Prevailing Wage Law: A Costly Burden
By Robert A. Lawson, Ph.D., posted July 1, 1995
Suppose your school board decides it wants to remodel classrooms in the local high school during the summer break and receives bids from two competing companies. The first bid is from a well established, unionized company that says it can do the job for $25,000 in two weeks. They have the...
A Proposal for a Fiscally Responsible Tax Cut
By Samuel R. Staley, Ph.D., posted May 1, 1995
The Governor’s Office and the legislature in Columbus have recently criticized the concept of a tax cut in Ohio, calling the suggestion “irresponsible.” The federal government, they warn, might shift social programs to the states, requiring increased state and local funds. The economy...
State Unfunded Mandates Hurt Local Communities
By Samuel R. Staley, Ph.D., posted April 1, 1995
Governor Voinovich received national attention last year by highlighting the cost of unfunded mandates on state governments. These federal mandates cost Ohio over $350 million in 1994 according to the Governor’s Office. “Aside from the enormous cost burdens,” the Governor wrote in a national...
Sports Stadiums Are No Pot of Gold for Cities
By Samuel Staley & David Swindell, posted March 1, 1995
In the wake of the $420 million Jacobs field and sports arena in Cleveland, cities across Ohio are scrambling for new ways to fund professional sports teams and stadiums. Tired of the largest cities getting most of the sports subsidies from state government, the Akron Beacon Journal...
The 110 Percent Solution: Building Private Alternatives to Welfare
By David Forte, posted February 1, 1995
Welfare reform is at the center of political debate in America. On the federal level, the Republican-controlled Congress has proposed reforms that range from re-instituting orphanages to a two-year cut-off for AFDC recipients. Since 73 percent of welfare funding comes from the federal government,...
Exports Help Spur Ohio Economy
By Michael Ellis, posted February 1, 1995
Trade issues generally spark heated debate in Ohio. Recently, the North American Free Trade Agreement (NAFTA) and the General Agreement on Tariffs and Trade (GATT) accentuated the rift between those seeking an expanded role in international markets and those seeking protection of domestic...
It's Time To Cut Taxes In Ohio
By Richard Vedder & Lowell Gallaway, posted January 1, 1995
The time is ripe to cut taxes in Ohio. The state government is going to run a huge budget surplus this year, unless the Republican-dominated state government approves new spending. That is a real possibility: spending is already up by double-digit amounts over last year for...
Restoring Cincinnati's Economic Vitality
By Samuel Staley and Robert Lawson, posted November 1, 1994
Most Cincinnati politicians and business leaders apparently believe that the city is doing all it can to encourage economic development and growth. This was evident in August after a councilman proposed cutting property taxes to stimulate the city’s economy. Most members of the city council,...
Rating Ohio Cities on Taxes, Crime, and Government Overhead
By Samuel Staley & Robert Lawson, posted September 1, 1994
Ohio’s cities are on the road to economic recovery: the Ohio Bureau of Employment Services reports that unemployment rates have fallen in every major city except Youngstown and Mansfield over the past year. In Columbus, for example, unemployment rates fell from 5.6 percent to 4.6...
Will Ohio's Taxpayers See Any Of The $500 Million Surplus?
By Richard Vedder & Lowell Gallaway, posted August 1, 1994
Ohio is in an interesting budget situation that should make Bill Clinton and federal budget officers envious. At the close of the fiscal year on June 30, the state of Ohio ran a budget surplus of $500 million. This surplus came even after the legislature spent well over $100 million on new...
