More Politics in Ploy to Plug Buckeye Budget Gap

Predictably, Republican pushback is challenging Ohio Democratic Gov. Ted Strickland's proposal to delay a 4.2 percent income tax cut that took effect the beginning of 2009. The state is in a bind -and Strickland is in a political one - as ideas percolate about how to balance the 2009-2011 budget. Legal wrangling has made a shambles of the governor's race track slot machine gambit, and creative ideas to replace this strategy are grounded in political cover for everyone involved.

House Bill 318 would delay the scheduled final annual installment of a five-year 21 percent tax cut included in the redo of the Buckeye state's tax regime in 2005. Presumably, this strategy would escape too much notice, as the folks in Ohio would wind up paying the same rate as they did in 2008 - in other words, at least it wouldn't be a tax INCREASE. So this one could fall a bit under the radar - certainly less invasive than a sales tax increase, which is what the state really needs.  Of course, a sales tax increase looks like a political third rail to everybody.

But Republicans ruled in 2005, spearheading the state's tax remake, and Republican Senate President Bill Harris casts the income tax cut schedule as untouchable. Conveniently, criticism of H.B. 318 is backing Strickland into a corner.  But Republican alternatives don't look any more (or less) plausible than the proposed tax cut delay. For example:

• A five (5) percent across-the-board reduction in compensation to state employees;
• Terminating the current 12.5 percent tax break on future property tax levies; and/or
• Raiding licensing fee collections from entrepreneurs blessed by November 3d voters to establish casino operations in the state.

It's fair to say that these alternatives are also relatively "painless," relative to a sales tax hike, anyway...

Republicans also want to make sure voters understand that they are not against cutting pay for themselves.  A five percent pay cut is tied to H.B. 318, so Republicans would move that provision into a separate piece of legislation, and would likely trumpet this as statesmanship.  (More political cover.)

The political wheels are well greased and turning very nicely.  Stay tuned...