The Ohio Senate is considering a fiscal 2014-15 budget that includes a $1.4 billion business tax cut. The cut – which would exempt a full $375,000 in business income from the income tax – is similar to a widely-criticized plan enacted by Kansas last year. As Policy Matters Ohio explains, however, none of the tax cuts under consideration (including the Governor's) will help Ohio’s economy: “They are bad for low- and moderate-income Ohioans, and slash revenue Ohio needs to support our economic success and improve our quality of life.”
On May 23, the Massachusetts Senate approved a fiscal 2014 budget that would generate $430 million in new tax revenues, in part by extending the sales and use tax to some computer-related services, raising the gas tax by 3 cents, and increasing tobacco excise taxes. Differences between the Senate budget and a broadly similar plan passed by the State House will now be worked out by a six-member conference committee.
If he ever decides to leave Hollywood, Nicolas Cage might have a future ahead of him in lobbying. After Cage visited Nevada, the state Senate approved a $20 million tax break for filmmakers. Unfortunately for Nevadans, however, film tax credits have been shown time and time again to be ineffective at spurring economic growth.
The Virginia Commonwealth Institute discusses the problems with lawmakers’ recent decision to cut the state’s gas tax by roughly 6 cents per gallon. As the Institute explains: “gas taxes are not to blame for high and volatile gas prices… [and] Virginia’s gas tax, which has been a steady 17.5 cents per gallon since 1987, was failing to produce enough resources to fuel adequate investment in our infrastructure.” The same is generally true nationwide.