Posts Tagged Cincinnati

Cleveland Tax Should Be Progressive, But It Isn’t

January 5, 2010… Mayor Frank Jackson’s inaugural talk was uninspiring, tedious and lacking the very essence of what it said it was about – the future.

Jackson offered Clevelanders nothing.

We face consistent population loss and job market breakdown. The city’s outlook is dismal. Cleveland has fewer people though more poor people as a percentage of the shrinking population.

This is the situation for most Ohio cities.

But you don’t see the political leaders of the major cities getting together to find solutions. They should be a powerful political coalition.

However, they seem to be each drowning in a downward spiral.

They all need money to operate.

One solution to the problem of revenue is very, very simple.

Get it from those who have it instead of from those who don’t.

What a novel idea.

Jackson’s fee tax on garbage is an example of uninspired thinking. Same as his traffic lights as revenue raisers.

But those “solutions” are easier than a real answer.

How can cities raise more money? They have to get the Ohio legislators to pass authorization that allows the cities to tax on a progressive basis.

What a novel idea.

We cannot keep going to those who have less and least for more revenue. That has been the process with sales taxes and sin taxes, garbage and other fees, and traffic tickets.

What the cities need is a progressive payroll tax, not the income tax that now exists where everyone pays the same rate. For wealth people a 2 or 3 percent payroll tax isn’t a burden. For a family on a limited income, it is a burden. It’s a hardship.

Where is the politician who will sell this state-wide, among cities and their political leaders?

Why should LeBron James – just the use the name everyone knows – pay a 2 percent city income tax and Joe or Jane Jones, making minimum wage, also pay a 2 percent tax. On the first penny they make, too.

LeBron likely has more income that doesn’t pay the payroll tax than Joe or Jane Jones makes in 10 years. Is that fair? Is that wise?

Why shouldn’t people earning big bucks pay a higher than 2 percent tax? Why should someone making minimum wage even pay a payroll tax?

I know how much it hurts. I paid city income taxes when I made so little that I paid no federal income tax. So have many, many others.

When are urban centers going to take care of their people? When are their people going to demand it?

When are police, fire and other public employees – enduring layoffs, low pay and no raises – going to demand that those with high incomes pay a fair share? Why are they willing to give away money that should go to their families to the families of the richest among us?

The lack of concern by these public employees amazes me. Don’t they realize that tens and hundreds of millions of dollars are being given away to businesses whose owners are wealthy but pay city taxes at the same rate they do?

Here are the top ten cities in Ohio. I ask why aren’t the people and their representatives demanding fair taxation legislation that would relieve the financial crisis all these cities face:

Columbus 754,885

Cleveland 433,748

Cincinnati 333,336

Toledo 293,201

Akron 207,510

Dayton 154,200

Canton 78,362

Parma 77,947

Youngstown 72,925

Lorain 70,239

Don’t wait for the Plain Dealer to lead this fight. Their top people benefit richly from things as they are. This is the kind of corruption Terry Egger and Susan Goldberg don’t – won’t – see.

This isn’t a reform they would favor.

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Does Atlantic City Have a Message to Ohio Voters?

October 27, 2009… “Today, Atlantic City, in the eyes of one gambling executive, Tim Wilmott, is in a ‘death spiral,’” that’s the tone of a Sunday New York Times piece on the financial troubles of the city’s casinos.

“Rows of slot machines stand eerily empty,” says the story while hotel rooms are empty. Many casinos have experienced double digit revenue drops, the report said.

The article is far from a hatchet job. However, it does have a cautionary message to Cleveland and other Ohio cities where casinos would go if Issue 3 is passed.

Cleveland will be rolling the dice next Tuesday when voters go into the booths to cast a vote that would give a billionaire a monopoly board contract for a Cleveland casino.

“The economic slowdown has shown that the gambling industry is not quite as recession-proof as was so long believed,” it said of Atlantic City.

And you might like to remember as you go into that booth the promise of Atlantic City’s gambling sales people:

“Billed as a ‘great experiment’ in urban redevelopment, legalized gambling was pitched to voters as an effort to reverse Atlantic City’s long decline…”

Sound familiar?

Over-expansion of gambling opportunities, along with bad economic times, has taken its toll on the business. Just as there are too many shopping centers there are too many gambling spots.

“Retirees who once hopped on buses to Atlantic City to play slots for a few hours can now happily play much closer to home – in eastern Pennsylvania or the New York Metro area, for example,” said the article.

Another problem mentioned: Debt. Interest payments have been missed and the inability to raise money for newer casinos.

And crime.

The article also cites arguments about how casino taxes are being used and who gets the benefit.

Here’s a link to the long article:

http://www.nytimes.com/2009/10/25/business/economy/25casino.html?_r=1&scp=1&sq=atlantic%20city%20&%20casinos&st=cse

Finally, “However well intentioned these efforts, some industry analyst have a tough time imagining just what Atlantic City or its casino operators can do to pull the town out of its rut.”

I guess I view a Dan Gilbert casino as an invitation to crime, an invitation to more government subsidies for roads, a hotel and other infrastructure needs, and an invite to politicians to find new avenues of helping their friends.

Don’t gamble on gambling.

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