What do Ohio and Japan have in common? Tax cuts.
Looks like there鈥檒l be tax cuts in Ohio.聽The state鈥檚 legislature has聽聽that heads to Republican Governor John Kasich鈥檚 desk this week. Ohio had passed a 10-percent across-the-board income tax cut last year that was to be聽phased in聽by 2015. The compromise bill will make the tax reduction fully effective this year, yielding $100 million in tax cuts over two years. Ohio鈥檚 nonrefundable Earned Income Tax Credit will also double from 5 percent of the federal ETIC to 10 percent, to the tune of $17 million a year.
A transportation tax hike in Missouri gets a gubernatorial 鈥渘o.鈥澛�Democratic Governor Jay Nixon says he opposes an upcoming state ballot initiative to raise the state sales tax by 0.75 percent and earmark the funds to transportation. He also moved the referendum vote to August, which will likely drive down turnout. Despite Nixon鈥檚 opposition, the initiative is聽.听聽鈥渙ver the past five years, Missouri鈥檚 construction budget for roads and bridges has fallen from about $1.3 billion annually to $685 million this year. It is projected to dip to $325 million by the 2017 budget.鈥�
Japan plans to cut corporate taxes.听The nation鈥檚 effective tax rate, including national and local taxes, is about 35 percent, in contrast to China鈥檚 25 percent rate, South Korea鈥檚 24 percent rate, and Singapore鈥檚 17 percent rate. Japan鈥檚 Prime Minister聽to cut Japan鈥檚 rate in fiscal year 2015 if its government can continue to control its deficit.听The Japan Times聽reports that only about 30 percent of Japanese companies pay corporate taxes., Japan鈥檚 public debt is more than twice聽 its gross domestic product, and central government debt has topped 1,000 trillion yen.
And down under, carbon emissions reductions may triple.听While US states begin to react to EPA鈥檚 proposed curbs on carbon-dioxide emissions, the story is very different in Australia. Down under, the聽聽a carbon tax has automatically triggered a tough聽new greenhouse gas emissions goal鈥攆rom a 5 percent cut by 2020 to a cut of more than 18 percent. 鈥淲e have always said we will repeal the carbon tax 鈥� lock, stock and barrel. We will cut emissions by 5 per cent from 2000 levels by 2020, and we鈥檒l do it without a carbon tax,鈥� said a spokesman for Australia鈥檚 Environment Minister. The government will try to repeal the carbon tax again after July 1.
