Friday, July 07, 2006

A Tale of Two States

Good news in Ohio: Gov. Taft, as ineffectual and marginally Republican as he is, has sped up income tax relief. It’s always nice when the government recognizes that it’s our money, not theirs. Maybe we’ll eventually see Ohio’s tax burden move out of the top 3 (NJ, below, is #17). Of course, we’d have to have some spending discipline in Columbus for that to happen. For Taft, and probably Ohio as a whole, too little, too late.

Bad News in New Jersey: A state government shut down caused by the Democratic Governor and Democratic controlled legislature couldn’t decide on who’s taxes to raise, and by how much. They finally settled on the 16.7% increase in sales taxes (was 6%, now going to 7%). Of course, there’s plenty of other bad news on the New Jersey business climate. It’s also interesting that the $1.1 billion expected to be raised by the increase in the sales tax doesn’t come very close to meeting the $4.5 million budget shortfall. So, more taxes likely, and don’t hold your breath waiting for the promised “property tax relief”.

Interesting to note that the Ohio business climate numbers are actually somewhat better than New Jersey’s (see the NJ business climate link above), but still on the “way, way, crummy” side.

I guess that goes to show something about the economic benefits of brining in casino gambling.