2008 Woodie Awards
Strickland rejects increase in state taxes
Erin Bowen
Issue date: 12/7/07 Section: Community
In an end of the year interview Nov. 30, Ohio Governor Ted Strickland announced he would not implement a tax increase to address the state's budget deficit.
At the interview with the press, Strickland discussed the impact of a tax increase on the economy.
"In my judgment, if the economy falters, the last thing we should consider would be a tax increase," he said. "I think the economy is fragile and a tax increase would be detrimental at this time of economic uncertainty."
According to the Ohio Office of Budget and Management Web site, as of July 1, 2006, the state's outstanding debt burden totaled $8,909,382,567.
Strickland's Press Secretary Keith Dailey defended the governor's position.
"Governor Strickland is committed to living within our means while continuing to invest in our priorities," Dailey said. "Because the economy is fragile and uncertain, he believes a tax increase would be detrimental."
At a recent meeting with his council of economic advisers, Strickland reported very modest growth within the economy.
Monitoring the budget and adjusting income tax rates have been an important project to Strickland, according to Dailey. Strickland announced Oct. 24 a 4.2 percent decrease in income tax withholding rates for 2008, as part of a 21 percent income tax cut that will be completed in 2009. Dailey said that Strickland intends for this tax cut to result in approximately $350 million more take home pay for Ohioans. Dailey said these new rates with take effect for pay periods ending after Jan. 1, 2008.
Dailey said Strickland has a plan to decrease the deficit despite the implementation of his budget plan.
"The governor is prepared to make the necessary adjustments to ensure the budget remains balanced," Dailey. "He will continue to collect information and assess the economic situation over the said next several weeks before making additional determinations about how to proceed."
Mike Curme, Miami University associate dean and associate professor in the Farmer School of Business, described the decision as to how to approach a budget deficit as a difficult one.
At the interview with the press, Strickland discussed the impact of a tax increase on the economy.
"In my judgment, if the economy falters, the last thing we should consider would be a tax increase," he said. "I think the economy is fragile and a tax increase would be detrimental at this time of economic uncertainty."
According to the Ohio Office of Budget and Management Web site, as of July 1, 2006, the state's outstanding debt burden totaled $8,909,382,567.
Strickland's Press Secretary Keith Dailey defended the governor's position.
"Governor Strickland is committed to living within our means while continuing to invest in our priorities," Dailey said. "Because the economy is fragile and uncertain, he believes a tax increase would be detrimental."
At a recent meeting with his council of economic advisers, Strickland reported very modest growth within the economy.
Monitoring the budget and adjusting income tax rates have been an important project to Strickland, according to Dailey. Strickland announced Oct. 24 a 4.2 percent decrease in income tax withholding rates for 2008, as part of a 21 percent income tax cut that will be completed in 2009. Dailey said that Strickland intends for this tax cut to result in approximately $350 million more take home pay for Ohioans. Dailey said these new rates with take effect for pay periods ending after Jan. 1, 2008.
Dailey said Strickland has a plan to decrease the deficit despite the implementation of his budget plan.
"The governor is prepared to make the necessary adjustments to ensure the budget remains balanced," Dailey. "He will continue to collect information and assess the economic situation over the said next several weeks before making additional determinations about how to proceed."
Mike Curme, Miami University associate dean and associate professor in the Farmer School of Business, described the decision as to how to approach a budget deficit as a difficult one.
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