In his first budget Governor Kasich killed Ohio’s Estate Tax which he said was driving wealthy Ohioans to Florida.    The tax was applied to estates valued over $338,000 – only about 7% of those in Ohio.   The bulk of the tax was paid to local governments and eliminating it removed $250 million a year from local coffers.   The effect was felt throughout the state and impacted important public safety services like police and fire.

The Estate Tax typically impacted well-off individuals with high-value estates but this year Kasich plans to institute a whole series of new “service” taxes that will hit everyone and will have a much bigger impact of those with lower incomes.

One new tax that stood out was for funeral services.

Unlike movies or bowling, which will also be taxed under the new plan, paying for a funeral is generally not a choice.  And the costs will hit families of all income levels already dealing with the emotional and financial struggles of losing a family member.    A host of other related services will also be taxed under Kasich’s plan…

 

Did your loved one leave you with a house?
Property sales agents and real estate title abstract services are now taxed.

Was the home full of personal items?
Packing and crating and intrastate courier service are now taxed.

Did your loved one leave you to handle his/her estate and finances?
Accounting, Bookkeeping,Tax return preparation, Legal services, Insurance services, Investment counseling, Loan broker fees and service charges of banking institutions are now all taxable.

Need your suit cleaned for the funeral?
Laundry and dry cleaning services

Or your hair cut?
Cutting, coloring, styling of hair

Traveling to the funeral?
Travel agent services are now taxed and you’ll be taxed when you park your car at the airport.

Want to run an obituary in the paper?
Sales of advertising time or space are now taxed.

Kasich’s 2013 budget was most certainly written with an eye to the 2014 election, with the Governor hoping to cast himself as the guy who cut Ohio’s income tax.   But choosing to greatly expand Ohio’s sales tax to offset the costs could backfire.  Instead of closing tax loop holes, which impact only a few individuals or businesses, Kasich chose to enact a tax increase on every Ohioan who sees a movie and every Ohio small business that uses a lawyer and an account.

The impact of Kasich’s sales tax increase is broad and will be felt across the state by most Ohioans.   His income tax cut, on the other hand, will have its largest impact on a much smaller group of wealthy Ohioans.

IF he’s lucky, Kasich might be able to sell this idea to his own people in the Republican-controlled legislature and actually get the tax plan passed.

But selling Ohioans on the idea that Kasich is a tax-cutter when they find themselves paying new taxes on everything from haircuts to cable TV to funeral services might be a more difficult sell.

 

Evangelize!
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  • http://www.facebook.com/people/Carrie-Preston/100000765994211 Carrie Preston

    We need to make sure that the general public hears and knows about this. I call this taxation with out representation. This is more taxes. Not less. I thought Repub’s were for less taxes and I mean not just less income taxes. These taxes can eaisly add up to more than what was saved in income taxes. And believe me I will save each and every receipt and I will add up all those sales taxes to see if they can come off my income taxes next year. With this kind of increase it might finally add up to enough to make a difference.

  • kasichissick

    Want less government vote for less republicans.

  • Retrofuturistic

    Funny how he still doesn’t tax corporations.

  • http://www.facebook.com/SSBohio Steve Brack

    Corporations are taxed in Ohio, primarily through the state’s Commercial Activity Tax.

  • michelle

    hes working with the progressive groups….dont let the commies fool you

  • http://twitter.com/tscinti Joe Metz

    I’ve already roughed up what the effect would be on my consulting service. I presume that the vast majority of this sales tax on services will actually be borne by me having to adjust my fees to leave my clients where they now stand and me having my pocket picked – an approximate 2500% tax over the Commercial Activity Tax I now pay (and I’m guessing I’ll still have that corporate tax). I’ve written to the governor and copied a multitude of legislators.

  • pb_dirtgirl

    Actually his budget proposes to exclude half the income for S-Corps and LLCs from taxation, up to $750,000, then cut the rates by another 20%.

  • Retrofuturistic

    They’re taxed very lightly (for entities that are supposed to be “people”) and they get LOTS of exemptions.

  • http://profiles.google.com/sdress Susan Dress

    The cruelest blow of all has to be the tax on debt counseling services. “So sorry, you need help getting out of debt, but we’re just going to take a bit more money from you because we can!”

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