Kasich’s proposed tax cuts for banks a slap in the face to working Ohioans

FOR IMMEDIATE RELEASE
May 25, 2011

CONTACT:
Anthony Caldwell, Media Relations
Cell Phone: 330-651-2042

Kasich’s proposed tax cuts for banks a slap in the face to working Ohioans

Columbus, Ohio – Today, SEIU 1199 President Becky Williams and Representative Mike Foley, member of the House Financial Institutions committee, released a joint statement discussing the ill effects of Kasich’s floating the idea of eliminating the franchise tax in Ohio.

President of SEIU 1199, Becky Williams believes that Governor Kasich needs to get his priorities in order.

“Governor Kasich floats a massive tax cuts for banks, while his budget is going to cost Ohio some 51,000 jobs, including tens of thousands of teachers and local public safety personnel like parole officers, police and firefighters,” said Williams. “Instead of rewarding his wealthy donors and his rich banker friends, Kasich should invest in our communities–by protecting the good middle-class jobs that keep residents safe and communities orderly.”

“Bank profits are on the rise with the last quarter being the best quarter for banks since the financial crisis and now Governor Kasich is exploring giving them a tax break costing the state millions in revenue,” stated Rep. Mike Foley.

Under Governor Kasich’s proposed budget, Ohio would raise roughly $400 million in revenue from the state franchise tax. Governor Kasich is looking at replacing that revenue stream with one that taxes net income.

If replaced with a CAT tax like system, it could result in much lower revenue. According to a Policy Matters Ohio report, the previous administration estimated that the CAT tax created 1.6 billion dollars in revenue compared to 3.2 billion when the tax code was based on gross receipts of the franchise tax and the tangible personal property tax.

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