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Spend Less, Grow More: A cure for bad tax policy in the Buckeye State.
The Wall Street Journal ^ | 7/21/05 | KENNETH BLACKWELL AND ARTHUR B. LAFFER

Posted on 07/22/2005 7:19:13 AM PDT by Heebert

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 the Tax Foundation, is 35.8% higher than it was in 1970, the largest increase in the nation over this period. The next largest, 26.5% in Arkansas, was far smaller, and the average increase in the U.S. tax burden was just 3.1%. Over the past decade alone, Ohio's state and local government direct spending per $1,000 of personal income has risen 19.6%, by far the highest such spending growth in the region and light years beyond the 6.8% figure for all states. To finance this expansion, higher taxes have come along hand-in-hand. The consequences have been harsh.

Since 1970, Ohio's share of the nation's personal income has declined from roughly 5.3% to under 3.8% today. In the first quarter of 2005, Ohio had the fifth highest unemployment rate in the U.S. at 6.2% versus the overall unemployment rate of 5.3%. Meager Ohio employment growth of 0.3% through the first quarter placed the state third-to-last nationally, far behind the U.S. overall rate of 1.7%. With falling relative incomes, high unemployment and poor job growth, it is no wonder that people are voting against Ohio with their feet. State-to-state migration shows Ohio losing residents, while total population growth of 0.2% ranks it a dismal 47th in the nation.

(Excerpt) Read more at opinionjournal.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; Government; News/Current Events; Politics/Elections; US: Ohio
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Welcome to the Ken Blackwell Campaign Kick-off Party

First, I feel that Mr. Laffer provides a coherent example of how to change Ohio's tax policies. I do not discount his prior economic findings, nor do I challenge his current theories. But what I do have issue with is that a no name Ohio Secretary of State, Ken Blackwell, has taken his economic prowess and used it to start his campaign for Ohio's open gubernatorial seat.

It has been no secret that Ken Blackwell aspires to be governor: he almost ran against current Governor Bob Taft in the last election's primary. So this is a interesting tactic to start his campaign. Get a well respected economist to co-author an op-ed about your states failing economy, and cite ways to improve it, not a bad idea. I do not think that Mr. Laffer understood the consequences of co-authoring an article with a failed political candidate.

My problems with the actual article are more political than economic. While the ever-growing tax rates in Ohio are a constant problem, they are in their current state due to the shameless politics of our current two term governor. The extreme spending that he has wasted over the last eight years has only lead to newer roads, a stronger aeronautics program, and stricter law enforcement. The core problems of our state still exist; including soaring healthcare and education costs.

The article states that Ohio’s share of the nations personal income has decreased in the last 35 years. This is a true statement, but he uses it incorrectly. The article refers to the ever-growing tax problem, while at the same time it does not cite the job loss or the fact that for years Ohio’s economy has been rooted in industries that are on the decline; including the steel and auto industries. The fact that our share of the nations personal wealth is decreasing is due to the fact that our economic base is shifting from an industrial base to a service base, and during this transition there has been a lapse in income.

I agree with the concern over not keeping Ohio’s traditional corporate tax as the subsequent tax only creates more headaches for businesses. Governor Taft has been a strong proponent of raising “sin” taxes. He has tried everything from raising cigarette taxes over 60% in the last 6 years to putting taxes on SUV drivers. He has also tripled state school tuition for institutions of higher learning. There just seems like better ways to balance a state budget.

While the proposed constitutional amendment does seem to hold the state accountable for its fiscal responsibilities, I question whether it takes into account the extreme need for reinvigorating a declining workforce workforce. To solve a problem of joblessness and economic decline, tax cuts do not seem like a feasible solution.

eFormer - News that Moves

1 posted on 07/22/2005 7:19:13 AM PDT by Heebert
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To: Heebert
"To solve a problem of joblessness and economic decline, tax cuts do not seem like a feasible solution."

Boy are you wrong there; time and again it's been shown that jobs follow low taxes, and as Ohio clearly demonstrates, the reverse is true as well.

And as far as Blackwell being a "failed political candidate," well, the difference between a failed candidate and winner can be as little as one election.
If you don't like Blackwell for some reason, say so, but try to come up with rational reasons rather than ad hominem attacks.

2 posted on 07/22/2005 7:35:06 AM PDT by Redbob
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To: Heebert
"To solve a problem of joblessness and economic decline, tax cuts do not seem like a feasible solution."

Boy are you wrong there; time and again it's been shown that jobs follow low taxes, and as Ohio clearly demonstrates, the reverse is true as well.

And as far as Blackwell being a "failed political candidate," well, the difference between a failed candidate and winner can be as little as one election.
If you don't like Blackwell for some reason, say so, but try to come up with rational reasons rather than ad hominem attacks.

3 posted on 07/22/2005 7:35:07 AM PDT by Redbob
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To: Heebert
"To solve a problem of joblessness and economic decline, tax cuts do not seem like a feasible solution."

Boy are you wrong there; time and again it's been shown that jobs follow low taxes, and as Ohio clearly demonstrates, the reverse is true as well.

And as far as Blackwell being a "failed political candidate," well, the difference between a failed candidate and winner can be as little as one election.
If you don't like Blackwell for some reason, say so, but try to come up with rational reasons rather than ad hominem attacks.

4 posted on 07/22/2005 7:35:08 AM PDT by Redbob
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To: Heebert
co-authoring an article with a failed political candidate.

I cannot imagine anyone calling Ken Blackwell a failed candidate. For one, what has he failed at? For another, this fine African-American is the only conservative running in this state, and his record, his resume, and his experience are a dream. Other politicians (any citizen) would love to have Blackwell's resume. As secretary of state, Blackwell's brilliant management and preparation are responsible for the voting system that was not able to be challenged by whining John Kerry supporters after the last Bush election.

So far as Taft is concerned, it is astonishing that anyone would support him or the state of this state. One can complain all they want about the Ohio economy being based on autos, but that simply isn't realistic. Whatever new industries growth and employment growth that has happened in other parts of America has by-passed Ohio because of our criminal tax burden. That has absolutely nothing to do with a fading auto industry. (It's like saying, "Because my grandpa's ill, the entire community couldn't plant their crops. Huh?....)

The Tafts pretty much think and act like they own Ohio...their own personal, political enclave. Taft, no different than any pure liberal, promised no taxes and IMMEDIATELY after the election supported a sales tax increase . It was an in-your-face, I-can-do-what-I-want from our aristocrats. (King Bob the IV)

In any case, Bob & friends decided at some point to "invest" about 20 million of state retirement money in 'coins.' (Can you believe even that???!!!)

The coins "disappeared." (I'm SERIOUS...no one knows what "happened" to them.) Bob is whining and crying that he shouldn't be "questioned" by legal authorities on this issue. He actually wants immunity.

The Taft Dynasty is out of its flippin' mind.

KEN BLACKWELL FOR GOVERNOR!

5 posted on 07/22/2005 7:39:52 AM PDT by xzins (Retired Army Chaplain and Proud of It!)
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To: xzins
Taft, no different than any pure liberal, promised no taxes and IMMEDIATELY after the election supported a sales tax increase .

That was a temporary 1% tax increase absolutely guaranteed to go away. When it was supposed to expire at the beginning of July, 1/2% went away and 1/2% became permanent. Thanks a lot Bob Taxt.

6 posted on 07/22/2005 7:56:38 AM PDT by KarlInOhio (Bork should have had Kennedy's USSC seat and Kelo v. New London would have gone the other way.)
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To: Heebert; RockinRight
I do not think that Mr. Laffer understood the consequences of co-authoring an article with a failed political candidate.

Failed? What race has Blackwell ever failed in? Not in either of his Secretary of State races. Not in his race for the mayorship of Cincinnati.

7 posted on 07/22/2005 8:06:38 AM PDT by NeoCaveman (More people have died in Ted Kennedy's Oldsmobile than at Gitmo)
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To: xzins
This guy heeber doesn't really know anything very important about Ohio. Blackwell is the most successful politician among the candidates for governor, and the most attractive to conservatives. He has high name recognition in the state, as evidenced by his leading in statewide preliminary polls among Republicans, whipping his retread opponents. No one who knows Ohio politics would call him a "no-name." The real no-name is Betty Montgomery, who has been in statewide office of one kind or another it seems for twenty years, and she is a total potted plant.

On the economics front, no one who knows anything about Ohio would say its economy is "rooted" in steel and autos. The fact of course is that the largest "industry" by far in Ohio is agriculture. Always has been. Is now. Probably always will be, the way things have been going.

8 posted on 07/22/2005 8:53:46 PM PDT by hinckley buzzard
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To: Heebert

What's your issue with Blackwell? From what I can see, he's about the only hope Ohio has left of getting a remotely conservative candidate into statewide office. Is there some other candidate you prefer? Or are you not so eager to say, because this is just a warmup for the hits you as Mike DeRINO's stooge are going to lay on Blackwell later?


9 posted on 07/22/2005 9:18:09 PM PDT by LibertarianInExile (Kelo, Grutter, and Roe all have to go. Will Roberts get us there--don't know. No more Souters.)
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To: hinckley buzzard

I think heebert knows more about Ohio politics that you could ever. Just cause you are sucking Blackwell's teet doesn't make him a qualified candidate. Every poll I've ever seen has Blackwell getting slaughtered. http://www.dailykos.com/story/2005/7/7/18324/85595
He is a waste of space, and I hope he gets the Rep. nomination so that is will be a cakewalk for Ted Strickland. He isn't even liked by his own party. By the way if you do want to win Petro or Betty M. is the Reps best candidate. The only reason anyone know who he is in Ohio is because everyone knows he is the one who rigged the election for Bush. Suprising how there was 245,000 votes recorded over the registered limit in Blackwell's hometown. Not even smart enough to cheat where he can't get caught. Ha obviously dude you are from the southern part of my state where you have nothing to do but raise chickens and mate with family. So before you wish to criticize someone for thier belief system you better look at your own first.


10 posted on 07/29/2005 10:55:49 AM PDT by Mocalimb
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To: Mocalimb; Admin Moderator

Your first post in 6 months, except for one you made to me on this thread today - http://www.freerepublic.com/focus/f-bloggers/1318510/posts - in regards to Heebert.

Something stinks to high heaven here.

I still stand by my remarks that you and Heebert are one in the same and are very likely trolling.


11 posted on 07/29/2005 12:29:05 PM PDT by mplsconservative
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To: Mocalimb

BTW, nice poll to cite.

If dailykos says it's true, it must be true. /dripping sarcasm


12 posted on 07/29/2005 12:31:29 PM PDT by mplsconservative
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To: mplsconservative

I do feel bad that you have such negative feelings for me. I guarantee that Heebert and I are separate people. When you monitor people's blog usage it makes me think that your time should be better spent elsewhere. Just because I have not posted on this site does not mean I am not active elsewhere, and if you are so inclined you can see that our IP addresses are in different parts of the country. But thanks for your interest in me. And good day.


13 posted on 07/29/2005 1:37:11 PM PDT by Mocalimb
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To: Mocalimb
The only reason anyone know who he is in Ohio is because everyone knows he is the one who rigged the election for Bush.

Like we would believe anything said by one who quotes DU talking points. Go troll elsewhere.

BTW It's good to know that the fever swamp moonbats are afraid of Blackwell.

14 posted on 07/29/2005 1:39:42 PM PDT by NeoCaveman (Are you now, or have you ever been a member of the Federalist Society?)
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To: Mocalimb

"The only reason anyone know who he is in Ohio is because everyone knows he is the one who rigged the election for Bush."Wow, two outrages lies in one sentence.


15 posted on 07/29/2005 1:40:27 PM PDT by CWOJackson
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To: Mocalimb
When you monitor people's blog usage it makes me think that your time should be better spent elsewhere.

Actually, mocalimb, your entire six posts here aren't that remarkably hard to "track."

You're here posting DU talking points and linking to dailykos.

I think my time is very well spent here since I'm a conservative. I belong on this conservative forum, comprende?

You, however, have proven that the time you spend elsewhere is at the DUmp. Now head on back over to the moonbat corral, pardner.

16 posted on 07/29/2005 1:48:44 PM PDT by mplsconservative
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To: Darksheare

Pinging you to this thread.

Aren't you one of the keepers of da zot?

Someone's beeber is just dying to be stuned. (o:


17 posted on 07/29/2005 1:55:27 PM PDT by mplsconservative
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To: mplsconservative

I have a modified version of the RKBA troll paving ping list, available on my bio page.
I see mr. x here.
Hmm..


18 posted on 07/29/2005 1:59:09 PM PDT by Darksheare (The day the tagline went "Boink!")
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To: Mocalimb

Considering it took you since January to respond to a post, I'm not holding my breath that you will return to this thread before December.


19 posted on 07/29/2005 2:02:15 PM PDT by Darksheare (The day the tagline went "Boink!")
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To: Mocalimb; Neets; Darksheare; scott0347; timpad; Conspiracy Guy; NYC GOP Chick; MeekOneGOP; ...

By the way, citing dailykos for polls is a sign of trollage around these parts.


CHeck this guy out, took him 6 months to respond to a question posed to him in January.
Chekc him out, lemme know what you think.


20 posted on 07/29/2005 2:04:41 PM PDT by Darksheare (The day the tagline went "Boink!")
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