State Rep. Vernon Sykes (D-Akron) requested June 17 an analysis of a new proposal by Ohio Gov. John Kasich to give tax breaks to financial investors. The proposal was reportedly provided to some members of the Ohio House and Senate Conference Committee to be included in the state budget at the request of Gov. Kasich.

“This tax breaks for big shots proposal could result in another devastating blow to middle class families facing massive budget cuts to their schools and communities,” said Rep. Sykes. “Of course we want to encourage investment in Ohio companies but we shouldn’t do it on the backs of hard working, middle class Ohioans.”

Gov. Kasich claimed yesterday that his proposal to give tax breaks to investors could “allow us to be in a position of having some of these big shots move back to Ohio" (The Columbus Dispatch, Jun. 16, 2011). This proposal could result in the loss of millions in tax revenue, which could deepen Ohio’s budget deficit and place a greater burden on middle-class taxpayers. “This new tax expenditure could mean millions of lost revenue to the state of Ohio at a time when Ohio is making deep cuts to balance its budget,” Rep. Sykes noted.

“Gov. Kasich is requesting this proposal be added to the budget at the last minute, which gives us very little time for public discussion and deliberation,” said Rep. Sykes. “It also gives us very little time to understand the true cost impacts to the budget, which is why I’m asking both the Legislative Service Commission and the Ohio Department of Taxation to provide a cost-impact analysis as soon as possible.”

Recently, the Buckeye Institute, Policy Matters Ohio and Greater Ohio, three Ohio think tanks from across the ideological spectrum, have proposed a complete review of Ohio’s 128 tax expenditures. In total, these expenditures give-away over $7 billion in tax revenue annually.


Rep. Sykes is the Ranking Member on the House Finance Committee and currently serves as the House Democrat Conferee on the Ohio House and Senate Conference committee. A letter requesting a cost-impact analysis on this new tax expenditure was sent to the Ohio Legislative Service Commission and the Ohio Department of Taxation.