Friday, March 18, 2005

 

More Ohio tax follies

While it appears that the average taxpayer will get screwed either way, the infighting continues in the "business communty" over whether to retain the old, loop-hole riddle franchise tax system or go with the proposed Commercial Activity (gross receipts) tax.

From the Plain Dealer:
But Rep. Bill Seitz said automakers and dealers have testified that the tax will hurt their operations, and asked Cleveland State University economics professor Ned Hill why a sales-tax hike wouldn't serve just as well.

"That alternative does not entail offending the largest industry in the state, and does not entail dividing the business community against itself, which is what's happening now," Seitz said.

[. . . ]

Hill suggested that some automakers oppose the new tax because, under the current system, they have used credits, enterprise zones and other incentives "to reduce their tax rates to effectively zero."
Well, apparently not just automakers:
The Ohio Department of Taxation released data this week that showed 16 of the state's 50 largest companies - six in the top 10 - paid the $1,000 minimum corporate franchise tax last year. Two of the state's 10 biggest companies actually received tax refunds from the state through tax credits.


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