A few words from Ohio’s Own: John Adams

This is the text from Rep. John Adams’ speech given at the Taxed to the Max Rally last Saturday. It was such great message, we asked Rep. Adams to send them so we could pass them along to you.

I come from the cornfields of west-central Ohio….where the 78th house district is ranked second in the state for manufacturing per capita…..and the owners of those businesses will tell you that they can compete with any country in the world…if government would just get out of the way…….one owner has told his children to go where the jobs are ….. and you can keep more of what you earn…go and I’ll catch up with you later….he tells them.
8 million people moved in 2007….and those who study migration patterns will tell you that they moved ….not because of weather ….as the liberals would have you believe but they moved to where the jobs are. And businesses move to the states that are the most tax friendly……with least regulatory burden.

Let me remind you:

  • Ohio’s income tax was only instituted in 1971
  • Ohio ranked 47th in 1970 for state and local tax burden as % of income
  • Ohio ranked 24th in 1994 for state and local tax burden as % of income
  • Ohio ranked 5th in 2007 for state and local tax burden as % of income

Ohio is a high tax and high regulatory state. A state in rapid decline. Why target the personal income tax? The personal income tax is highly punitive on those who generate the wealth and capital in Ohio. When the tax base is broad, tax rates can be kept as low and non-confiscatory as possible. Rather than having the high wage earners leave the state, they will stay. As consumers, we should understand this: he who has the lowest price wins.

House Bill 400 is a simple bill. All it does is phase out the income tax, gradually, in reasonable, incremental amounts. Now, unfortunately, this is falsely reported as requiring cuts in government spending. It doesn’t. In fact, government spending will continue to grow, just at a slower rate. Let’s us look at Indiana……a state that is taking jobs from Michigan, Illinois and Ohio.

Governor Mitch Daniels addressed an $800 million budget deficit not by raising taxes, but by enacting systematic reforms to reduce waste….by cutting more than $250 million in wasteful spending, cutting the rate of spending growth in half and reducing the burden on taxpayers, Daniels turned the deficit into a $1.3 billion budget surplus.

Over the last six years total state spending in Ohio has increased an average 2.5 percent annually. My plan…..is cutting this rate in spending in half and then devoting the difference to reducing the income tax. When we look at the General Revenue Fund over the same period of time the rate of growth has averaged 4.5 percent. Again, cutting the rate in spending in half and devoting the difference to the income tax reduction, it can be eliminated even faster— And remember, this is not the most important part of the formula. Much more important is the additional growth that comes from confidence in a fair taxing policy.

The unknown is when does the political class in this state step up with the courage….the guts….and yes…..how about just a little damn leadership to enact policies to structurally change Ohio for the better?

In closing, a quote from economist Arthur Laffer comes to mind when discussing tax policy…

Nobody wants government to go to “0″, thats not the dream, the dream is that all taxes, save “sin taxes” are bad….they all are bad, what you do is the least damage to your society, to collect the requisite revenues to do the projects that government needs and desperately should do for its citizenry.

And one final thought…the most immoral act a government can ever perpetrate against its citizenry is to enact policies that have the effect of destroying the production base from which all beneficence ultimately flows.

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