Kevin Coughlin is a business owner and former state representative and state senator. He lives in Bath Township in Summit County.
George Voinovich would be wagging his finger at Ohio legislators if he were here today.
Ohioans are paying more in taxes than our state government anticipated. Tax revenue for this fiscal year is $1.2 billion higher than projected. That surprise windfall has triggered a debate in Columbus over what to do with the extra money.
The spenders are already licking their chops. “Let’s dump it into schools!” they cry. “Medicaid needs more!” But anyone who’s run a business knows that spending one-time windfall money to pay for ongoing expenses is a recipe for disaster.
Then there are the slightly more cunning types who say, “Let’s just save it for next year’s budget.”
Right.
That’s like a drunk hiding the last beer in the fridge so he can pretend he’s being responsible until tomorrow. It’s just delayed gluttony with better bookkeeping.
Surpluses in Ohio tax revenue are not uncommon, and lawmakers have repeatedly used them in recent years to expand state spending. Ohio’s two-year operating budget has ballooned to more than $200 billion.
I once found myself waiting for a plane with the late George Voinovich. We reminisced about his time as governor. Voinovich was rightly proud that he had established the Income Tax Reduction Fund, and he was unhappy that Ohio lawmakers were sidelining it.
The 1.2 billion isn’t the government
The fund was beautiful: excess revenue first filled the rainy day fund, then the rest automatically cut everybody’s taxes. No hearings. No grandstanding. No way for the professional feeders to get their forks in it. Voinovich understood that the best way to control spending is to make sure the money never reaches their hands in the first place.
It’s true that Ohio lawmakers lowered the state income tax to a flat 2.75% last year, with some discussing eliminating it entirely. But surpluses still occur – and here we are arguing over what to do with $1.2 billion that isn’t the government’s in the first place.
Send it back.
Cut everybody a check. Call it a “Thank You for Paying More Than We Expected Dividend.” With 5.5 million taxpayers in Ohio, $1.2 billion works out to over $200 a head. Not life-changing money, but enough for a nice dinner, some decent groceries, or to just feel like the government isn’t treating you like its personal ATM.
Trying to pick and choose which tax to cut is problematic. The income tax might disappear. Property tax cuts only help people who own property. A sales tax holiday could trigger a shopping spree for people who don’t need the help.
The smart move is to bring back a permanent taxpayer dividend mechanism. No pretending. No speeches about “investing in our future” while shoveling cash into the maw of government. Just honest, clean return of excess money to the people who earned it.
A great former governor would surely smile.
Kevin Coughlin is a business owner and former state representative and state senator. He lives in Bath Township in Summit County.
This article originally appeared on The Columbus Dispatch: You deserve cut of Ohio’s $1.2 billion tax surplus not those licking chops | Opinion
Reporting by Kevin Coughlin, Guest Columnist / The Columbus Dispatch
USA TODAY Network via Reuters Connect
By Kevin Coughlin, Guest Columnist | USA TODAY Network
