Grover Norquist, president of Americans for Tax Reform has released the following statement in response to Gov. John Kasich’s income tax cut plan in Ohio:

In last night’s State of the State Address, Governor Kasich unveiled a plan to lower income tax rates for Ohioans by $2 billion. While this is a laudable goal, the proposal also contains nearly $1.5 billion in tax hikes – primarily on job creators.

The recent drop in energy prices has already triggered layoffs in some Ohio steel plants as the demand for pipeline manufacturing has declined. Increasing taxes on Ohio’s energy producers and small businesses could lead to more layoffs and set Ohio back in its economic recovery.  

Additionally, the proposed increase on tobacco products leaves open the door to future income tax hikes as tobacco has proven consistently to be a declining source of revenue. And increasing taxes on e-cigarettes and vapor products, devices many people use to quit smoking and improve their health, is counter-productive to the goal of a healthier Ohio.

Between the year 2000 and 2009, Ohio’s spending exceeded the rate of inflation and population growth by $73.6 billion. There is room to cut in the state budget. The legislature would better serve Ohio taxpayers by reducing state spending and reducing income taxes rather than cutting taxes on the backs of job creators.

Gov. Kasich’s plan to reduce state income taxes is a step in the right the direction for Ohio taxpayers, but doing so on the backs of job creators leaves the plan less than inspiring. 

Nearly half of the cost of beer, over 40 percent, is the result of taxes. The federal and all 50 state governments assess targeted taxes on beer, which is borne by consumers in the form of higher prices. Fortunately, two bills were introduced last month in Congress to provide some needed relief: The Small BREW Act & The Fair BEER Act. 

For those who don't think the tax code should be used to pick winners and losers, the Fair BEER Act is the better of the two bills, as it reduces taxes for all breweries, while the Small BREW Act only applies to some breweries. Scroll down to read a recent column in Reuters by ATR's Grover Norquist and Patrick Gleason that explains the differences between these two bills, along with similar efforts to reduce beer taxes at the state level: 

REUTERS

Title: The most expensive ingredient in beer? It’s not hops, it’s taxes.

By: Grover G. Norquist & Patrick Gleason

Whether you like craft beer brewed in small batches or the mass-produced variety, the most costly ingredient that goes into every pint of beer in the United States is taxes. Between federal, state and local levies, taxes make up, on average, more than 40 percent of the cost of beer purchased in the United States. In an effort to reduce the excessive tax bite, two competing bills have been proposed this month on Capitol Hill, along with legislation at the state level.

One of the proposed bills, the Small BREW Act, would, if passed, provide targeted federal excise-tax cuts for beer made by domestic brewers, with tax relief based on volume. This bipartisan bill would change the definition of a small brewer.

The federal government now levies a $7 tax on each of the first 60,000 barrels produced by small brewers. After that, the tax spikes to $18 a barrel. Businesses not defined as small brewers — those that produce more than 2 million barrels annually — must pay the $18 federal tax on every barrel they make.

The proposed bill, however, would halve the tax for small brewers on the first 60,000 barrels to $3.50 a barrel and redefine a small brewer as a business producing fewer than 6 million barrels a year, as opposed to the current 2-million barrel standard.

Senators Ben Cardin (D-Md.) and Susan Collins (R-Maine) introduced this bill. It has 25 Senate sponsors from both parties.

A competing bill, the Fair BEER Act, would provide federal tax relief for brewers of all sizes that are headquartered both domestically and abroad. Brewers producing 7,143 barrels or less a year, which represents 90 percent of brewers — would be exempt from paying federal beer excise taxes.

Brewers who produce between 7,144 and 60,000 barrels would face a $3.50 a barrel excise tax. Production in excess of 60,000 and up to 2 million barrels would face a $16-a-barrel tax. An $18-a-barrel tax would apply to production beyond 2 million barrels.

This bill, introduced by Representatives Steve Womack (R-Ark.) and Ron Kind (D-Wis.) has 23 co-sponsors.

But not just lawmakers on Capitol Hill are looking to provide tax relief for beer drinkers. State legislators seek to reduce the excessive tax burden on suds. In addition to the federal excise tax, all 50 states apply punitive taxes on beer. Tennessee, for example, levies the highest excise tax on beer at $1.17 a gallon. Alaska comes in second, with a rate of $1.07 a gallon. Wyoming has the lowest beer excise tax, at $0.02 a gallon. Wisconsin and Missouri have the next lowest, at $0.06 a gallon.

CLICK HERE to read the rest of the column

Governor Robert Bentley has made it clear that he intends to break his WRITTEN pledge to voters to oppose and veto “any and all efforts to increase taxes.”  Shortly after his re-election this past November, Gov. Bentley began making a push to increase taxes. Americans for Tax Reform pushed back, noting:

According to the Cotton State’s governor, eliminating tax deductions is not the same as raising taxes.

"I am not for raising taxes and this actually would not be raising taxes," Bentley said. "It would be taking away some deductions. That is certainly one of the things we'll be looking at."

Bentley is wrong. By signing the Taxpayer Protection Pledge, the governor has committed to “oppos[ing] changes in tax deductions or credits that increase the net tax burden on Americans.” 

Enacting legislation that burdens taxpayers with higher taxes and fees to fuel exorbitant state spending, goes against his written promise to the people of Alabama to "oppose and veto any and all efforts to increase taxes." Americans for Tax Reform encourages Gov. Bentley to pursue revenue neutral, pro-growth tax reform and enact spending restraint instead of raising taxes on Alabama families.

Now Gov. Bentley is floating a plan which would raise taxes in Alabama by roughly $700 million, according to Yellowhammer News, despite having previously opposed tax increases:

“When you hurt businesses and you tax businesses, you’re going to lose jobs and we need to be creating jobs,” he said. He went a step further and signed Americans for Tax Reform’s “Taxpayer Protection Pledge,” committing himself in writing to opposing all tax increases. During his most recent campaign, Gov. Bentley’s re-election ads also prominently displayed the words “No New Taxes.” 

That’s right. Despite having won two gubernatorial races by campaigning against higher taxes, featuring his promise to not raise taxes on his website, and making a written promise to the people of Alabama to not raise their taxes, Gov. Bentley is now pushing for just that. Higher taxes.

The American people have historically reacted poorly to politicians who promise not to raise taxes and then do. Broken promises on taxes cost George H.W. Bush a second term as President and Tom Corbett a second term as Governor of Pennsylvania. When you make a promise, people expect you to keep it. This might explain why Gov. Bentley waiting to announce his intention to break his promise against higher taxes until after he won re-election. 

The Alabama Republican Party has already responded to Gov. Bentley’s plan, passing a resolution in opposition to any proposed tax hikes. Yellowhammer News reported that the resolution read:

“Alabama is still in a state of recovery from the recent and extended recession that has gripped this state and the entire nation for the past several years,” the resolution said. “Be it therefore resolved that we, the members of the Alabama Republican Party State Executive Committee call upon Governor Bentley and legislative leaders to consider options other than an increased tax burden on Alabama citizens as a solution to the state’s fiscal problems.” 

Between 2000 and 2009, state spending in Alabama has exceeded the rate of inflation in population growth by just over $20 billion. Gov. Bentley should take the lead and work with legislative leadership to pursue reductions in state spending and truly pro-growth tax reform like that enacted in North Carolina and Wisconsin. 

Help Americans for Tax Reform stop Gov. Bentley’s $700 million tax hike. Call Gov. Bentley’s office at (334) 242-7100 or click here to email and tell him stand by his promise to Alabama taxpayers to oppose any and all efforts to increase taxes.

Last year the Utah Department of Insurance issued a ruling prohibiting small businesses across the state from utilizing the services of Zenefits, a company that provides employers with a free online platform to manage human resources activities such as hiring, payroll, retirement plans, and health insurance. This behavior is highly unusual for a state that prides itself as a haven for innovative businesses, both small and large. Recognizing the direct damage this regulatory edict places on Utah's technology sector, Representative John Knotwell introduced House Bill 141 in the Utah House of Representatives. If passed, HB 141 would lift the ban on Zenefits and make clear that Utah supports innovative companies and technologies.

Below is a copy of the letter Americans for Tax Reform sent to Utah representatives urging them to support HB 141: 

Dear Members of the Utah House of Representatives,

Utah currently has the dubious distinction of being the only state in the nation to ban an innovative new technology that provides tremendous benefits for small businesses. On behalf of Americans for Tax Reform and our supporters across Utah, I urge you to support and vote for House Bill 141, legislation introduced by Representative John Knotwell that would fix this problem and ensure Utah retains its reputation as a pro-business state that welcomes innovative companies and entrepreneurs.

Last year the Utah Department of Insurance issued a ruling prohibiting small businesses across the state from utilizing the services of Zenefits, a company that provides employers with a free online platform to manage human resources activities such as hiring, payroll, retirement plans, and health insurance.

20th century brick and mortar health insurance brokers, rather than try to compete, decided to instead get state regulators to shut down their innovative competition. Imagine if early in the 20th century, horse and buggy operators successfully shut down the emerging automobile industry. That might sound ridiculous but it is analogous to what the health insurance brokers got Utah regulators to do to Zenefits.

This situation represents a classic case of protectionism, in which entrenched actors in an industry use the heavy hand of government to shutdown competition. The result of this is less choice and higher costs for consumers. In the case of the Zenefits ban, the victims are Utah small businesses, the engines of job-creation, who are now needlessly deprived of easy-to-use technology that was reducing costs and increasing their job-creating capacity. Such a misguided ruling, aside from the economic harm it does to in-state employers, does great damage to Utah’s reputation as a business-friendly state that is attractive to high tech companies, entrepreneurs, and startups. HB 141 would reverse this damage and ensure Utah retains its status as a hub of commerce and innovation.

HB 141 would, if passed, lift the ban on Zenefits and make clear that Utah supports innovative companies and technologies. Passage of HB 141 would clarify a confusing law that does unnecessary harm to Utah small businesses. Lifting the ban on Zenefits will provide Utah employers with an easy-to-use online platform that reduces costs, thereby freeing up resources to invest in their businesses and hire more workers. As such, I urge you to support HB 141, legislation that is important to Utah’s economy and reputation.

Americans for Tax Reform will continue to follow this issue closely throughout the session and will be educating your constituents as to how you vote on this important matter. If you have any questions, please contact Patrick Gleason, ATR’s director of state affairs, at (202) 785-0266 or pgleason@atr.org.

Onward,

Grover Norquist

President, Americans for Tax Reform