A brief history of the Ohio income tax by Michael F. Curtin February 15, 2017


 

A brief history of the Ohio income tax
by Michael F. Curtin

Gov. John Kasich keeps swinging his ax at Ohio’s state income tax.

When he launched his 2010 campaign, Kasich revealed a dream of abolishing the tax. He won’t accomplish that, but his fourth and final budget proposal represents his fourth consecutive whack at it.

“We’ll march over time to destroy that income tax that has sucked vitality out of this state,” Kasich declared at his 2010 campaign kickoff.

The nexus between Ohio’s income tax and its economic fortunes is questionable. Forty-three states have income taxes. As of 2014, Ohio’s per-capita income-tax burden ranked 34th, says the conservative Tax Foundation.

In the modern era, conservatives argue the tax punishes initiative and slows economic growth. Progressives defend graduated income taxes as essential for reducing the average Joe’s overall tax burden.

This ideological fault line didn’t always exist. In the early 1900s, as the Progressive Era gained steam, federal and state leaders — Democrats and Republicans — simultaneously took interest in the idea of taxing incomes.

In September 1906, Republican Gov. Andrew L. Harris appointed a five-man tax commission “to investigate the tax laws of this state and to make recommendations for their improvement.”

In June 1909, President William Howard Taft, a Republican, proposed a constitutional amendment giving Congress the power to levy income taxes; the amendment was ratified in 1913.

The work of Ohio’s tax commission prompted delegates to the state’s 1912 constitutional convention to consider a state income tax. The question was put to Ohio voters that September. By a 52-48 vote, Ohioans authorized the General Assembly to consider income taxes, with uniform or graduated rates.

The General Assembly was not quick to use this authority. As the 20th century unfolded, the state looked elsewhere for revenues. In response to needs created by the Great Depression, in 1934 Ohio enacted a statewide sales tax of 3 percent. In 1967, it was raised to 4 percent.

However, pressures for an income-tax increased throughout the 1960s. In 1962, Tax Commissioner Stanley J. Bowers predicted Ohio would need an income tax within five years, primarily to relieve excessive burdens placed on real estate and personal property.

In 1968, a tax-study committee led by state Rep. Albert H. Sealy, R-Dayton, held 24 hearings across the state. Business interests, led by the Ohio Farm Bureau, the Ohio Contractors Association and the Ohio Hardware Association, voiced support for an income tax to offset the hated personal-property tax, which bore no relation to profitability.

In December 1971, after a half-century of buildup, Democratic Gov. John J. Gilligan and a Republican legislature adopted a state income tax, with rates ranging from 0.5 to 3.5 percent. The Republican game plan was to give Gilligan just enough votes to pass the tax, then clobber him with it in 1974.

When conservatives led by state Rep. Robert Netzley qualified a repeal for the November 1972 ballot, Ohio Republican Chairman John Andrews worked behind the scenes in opposition. The Ohio GOP platform that year remained silent on the issue. The repeal failed by more than 2 to 1. There were many reasons for Gilligan’s subsequent defeat, but the GOP tax strategy was pivotal.

The 1981-82 recession prompted Republican Gov. James Rhodes — a master of the “temporary tax” — to win approval of a 50 percent increase in the income tax. His successor, Democrat Richard Celeste, solidified it, adding another 40 percent over pre-1982 levels.

Those increases prompted another repeal effort, this time led by conservative state Sen. Thomas Van Meter. The repeal failed, 56-44.In 1984, for the first time, state income-tax collections surpassed sales-tax collections. By 2005, income-tax revenues accounted for nearly half of all state revenues, far outpacing the sales tax.Since then, the tide has run in the other direction. Under Govs. Bob Taft (1999-2007) and Kasich (2011-present), state income-tax rates have been slashed 30 percent. Sales-tax collections now far outpace income-tax revenues.

Kasich hopes to accelerate that trend, proposing a 17 percent reduction in income taxes, offset by increasing the sales tax to 6.25 percent, from 5.75 percent.

But even with Republican supermajorities in the House and Senate, Kasich might find a shortage of fellow ax wielders. Over time, the income tax comes in handy.

This piece originally ran in the Columbus Dispatch on Wednesday February 15, 2017

Columbus native Michael F. Curtin was formerly a Democratic Representative (2012-2016) from the 17th Ohio House District (west and south sides of Columbus). He had a 38-year journalism career with the Columbus Dispatch, most devoted to coverage of local and state government and politics. Mr. Curtin is author of The Ohio Politics Almanac, first and second editions (KSU Press). Finally, he is a licensed umpire, Ohio High School Athletic Association (baseball and fastpitch softball).

 

Jean Murrell Capers (1913-2017)

  
1948 photo (CSU)

Jean Murrell Capers by Marian Morton

Jean Murrell Capers (1913-2017) met head-on the challenges of being both female and black by maintaining her outspoken political independence. The daughter of teachers, she went to Western Reserve University on a scholarship, one of the university’s few black students at the time. She earned a degree in education and taught briefly before getting her law degree from Cleveland Law School.  She passed the Ohio Bar in 1945 and was appointed assistant police prosecutor by Mayor Thomas A. Burke in 1946. “[A]nother first for Negro women,” the Cleveland Call and Post announced proudly. [16]The newspaper later applauded Capers as the one of several “lady lawyers [who] bring beauty [and] brains” to the local legal community.  An accompanying photo shows a stylish Capers, smiling mischievously. [17]

Capers made her first foray into partisan politics in 1943, staging an unsuccessful write-in campaign for City Council. She also ran unsuccessfully for Council in 1945 and 1947. Like Cermak, she early gained the support of organized women’s groups, and in 1949, she got one of her few political endorsements from the Glenara Temple of Elks, of which she was a member. “[I]t is high time that Negro womanhood took its place in the sun of city politics,” said Republican leader and temple member, Lethia C. Fleming. [18]  In 1949, on her fourth try, Capers became the first black woman to be elected to City Council and the first Democrat to be elected from what had historically been a Republican ward.

Her four subsequent elections to Council reflected her ability to organize her ward and get out her supporters, doubtless impressed by her education, her political skills, and her glamorous appearance. Capers fought for a swimming pool for her ward’s children and offered a prize for the neighborhood’s cleanest yard.

But she also sparked plenty of controversy and made plenty of enemies.  She joined forces with Council member Charles V. Carr in an unsuccessful effort to make the possession (as opposed to the sale) of policy slips legal despite police efforts to crack down on the numbers racket. [19] And despite the opposition from local pastors, she got a license for a local bingo parlor. She criticized Cleveland’s ambitious slum clearance program: “In every instance since urban renewal began, the city has created more problems than it has cured.  This is reflected in increased crime and lower sanitation standards.”[20]   (Its critics often referred to urban renewal as “Negro removal.”)

Her opponents alleged that she had ties to rackets figures and pointed to her poor attendance record at Council meetings.  There were also allegations of voter fraud in her ward in 1952 and 1953.  In 1956, she was the only black member of Council to oppose the fluoridation of city water, further estranging her from the Democratic majority. [21]

Even though it had earlier praised her, Capers’ most outspoken critic became the Cleveland Call and Post, the city’s African-American and Republican newspaper, which accused her of being a lazy Councilman and a “wholly irresponsible person.” [22] She was a “vicious, skilled campaigner,” the paper claimed, whose sex “protected her from retaliation in kind.”[23]  Her sex did not protect her from savage attacks by the paper –  for example, for her opposition to the appointment of Charles P. Lucas, a black, to the Cleveland Transit Board in 1958: “the odor of selfish irresponsibility and putrid demagoguery … marked the conduct of Mrs. Jean Murrell Capers,” the paper spluttered. [24]  Everyone wanted her out of office except her constituents.

By 1959, however, although she was chairman of Council’s powerful planning committee, Capers had lost her Council seat to James H. Bell, the candidate endorsed by local Democrats.  Bell “ has retired, at least temporarily, one of Cleveland’s most colorful and successful political demagogues …. [who] was possessed of a vibrant sort of feminine attractiveness, an excellent family background, and a razor sharp mind, ” wrote the Call and Post. [25] Capers unsuccessfully filed suit in Common Pleas Court to set aside Bell’s “fraudulent victory.” [26] Undiscouraged, she ran unsuccessfully in 1960 in the Democratic primary for state Senate in a large field that included Carl Stokes, and in 1963, she lost a primary race for her old Council seat.

In 1965, Capers and her League of Non-Partisan Voters organized the movement to draft Stokes  to run as an independent mayoral candidate, a race which he lost.  Only two years later, however, the league supported Republican Seth Taft when he ran against Stokes for mayor.  Capers minced no words when she explained league’s about-face: “Mr. Taft has qualities superior to those of his opponent and has the broad personal knowledge necessary to administer the complex affairs of the city.  Stokes knows nothing about anything and is far too superficial in our judgement to serve as mayor.  Carl Stokes especially lacks the knowledge and understanding necessary to solve this city’s crisis in human relations.” [27]  Capers subsequently acted as the lawyer for Lee-Seville homeowners who fought off Stokes’ plan to locate public housing in their neighborhood.  In his embittered autobiography, Stokes called her “one of the brightest politicians ever to come out of Cleveland” but also accused her of being a hustler who supported him in 1965 only to get herself back into politics. [28]

In March 1971, Capers decided to run as an independent in the mayoral primary. She had joined the new National Organization for Women and hoped to win support from the emerging woman’s movement. In mid-summer, she discovered that she had missed the Board of Elections filing date for independents but persuaded a federal judge to overturn this early filing date. The date became a moot point since she did not get enough valid signatures on her petition and was disqualified from the mayoral race. Thanks to a divided Democratic Party, Republican Ralph Perk was elected mayor.

By 1976, Capers had become a Republican herself, and her former nemesis, the Call and Post, endorsed her candidacy for Juvenile Court Judge.  She lost this race, but Republican Governor James A. Rhodes appointed her to a municipal judgeship in 1977, a position she held until her retirement in 1986.  Reflecting on her long, difficult political career, Capers pointed to her double handicaps of race and gender, maintaining that her “detractors resented her not just because she was a black woman but because she was an educated black woman. ‘They still had the concept that the only place for a Negro woman was on her knees scrubbing the floors. If I had been a dumb Negro woman, I would have gotten along much better.’”[29]

In recognition of her long, difficult political career, Capers earned many professional honors. These include the Norman S. Minor Bar Association Trailblazer Award and induction into the Ohio Women’s Hall of Fame.

This essay is part of a longer piece written by Dr. Marian Morton, here

“Is Northeast Ohio a Sanctuary Region?” a forum on Jan 17, 2018

League of Women Voters Cleveland Hts/Univ Hts Chapter and Heights Public Library Present:

Is Northeast Ohio a Sanctuary Region? 
Laws and policies: Where does our region stand on immigration?

The Cleveland.com preview for the forum is here

Video from forum

Wednesday January 17, 2018
From: 7:00-8:30pm
Heights Library Main Branch
2345 Lee Road Cleveland Hts 44118

This panel will take an informed perspective on current Cleveland Hts, Cuyahoga County, Ohio and U.S. immigration policies and laws.

Panelists:
Kahlil Seren, Councilperson, City of Cleveland Heights

Farhad Sethna Esq., Immigration-America

Lynn Tramonte, Deputy Director, America’s Voice

Moderated by Elizabeth Knowles Esq, Immigration & Human Rights Law Clinic, University of Akron

Free and open to the public

 

“A Man is Passing” Edmund Vance Cooke poem written in honor of Tom L. Johnson

Poem written in 1910 by Edmund Vance Cooke in honor of Cleveland Mayor Tom L Johnson

A MAN is passing. Hail him, you
Who realize him stanch and strong and true.
He found us dollar-bound and party-blind;
He leaves a City with a Civic Mind,
Choosing her conduct with a conscious care.
Selecting one man here, another there.
And scorning labels. Craft and Graft and Greed
Ran rampant in our halls and few took heed.
The Public Service and the Public Rights
Were bloody bones for wolf and jackal fights.
Now, even the Corporate Monster licks the hand,
Where once he snarled his insolent demand.
Who tamed it? Answer as you will.
But truth is truth, and his the credit still.

A Man is passing. Flout him, you
Who would not understand and never knew.
Tranquil in triumph, in defeat the same.
He never asked your praise, nor shirked your blame.
For he, as Captain of the Common Good,
Has earned the right to be misimderstood.
Behold! he raised his hand against his class;
Aye, he forsook the Few and served the Mass.
Year upon year he bore the battle’s brunt;
And so, the hiss, the cackle and the grunt!
He found us striving each his selfish part.
He leaves a City with a Civic Heart,
Which gives the fortune-fallen a new birth.
And reunites him with his Mother Earth;
Which seeks to look beyond the broken law
To find the broken life, and mend its flaw.

A Man is passing. Nay, no demigod.
But a plain man, close to the common sod
Whence springs the grass of our humanity. Strong
Is he, but human; therefore sometimes wrong,
Sometimes impatient of the slower throng.
Sometimes unmindful of the formal thong.
But ever with his feet set toward the height
To plant the banner of the Common Right,
And ever with his eyp fixed on the goal.
The Vision of a City with a Soul.

 

Maurice Maschke aggregation

 

1 Maurice Maschke – The Gentleman Boss of Cleveland by Brent Larkin

2 Maurice Maschke from Philip W. Porter

3 Maurice Maschke

4 The Death of Maurice Maschke

5 “Maurice Maschke Memoirs” Plain Dealer Series August, 1934

6 Maurice Maschke, a tribute written by Roelif Loveman, Plain Dealer (11/20/1936)

How metro Cleveland and Akron stack up against Buffalo, Cincinnati, Columbus, Detroit and Pittsburgh – 9/15/2017 Cleveland.com

How metro Cleveland and Akron stack up against Buffalo, Cincinnati, Columbus, Detroit and Pittsburgh
9/15/2017  Cleveland.com
by Rich Exner
The link is here

Some of the Best of 2016

Joe Posnanski story on Cleveland Cavs and LeBron James 6.20.16 (NBC)
(article removed by NBC)

Some of the Best of 2016: Long Form Essays of Note (plus other content)

Drowning in Dysfunction: How the Cleveland Water Department is Failing its Community, Violating Rights (WEWS-TV5) 12/22/2016

Returning to Ohio How a small, Midwestern town has changed over the decades—and where it aims to go (Atlantic) 12/12/16

Tower Struggle. What Does Sale of Iconic Building Mean for Cleveland? 11.1.16 (Cleveland Magazine)

Silent Sanctuaries: In Pittsburgh, These Houses of God Stand Mute, Often Crumbling 10.31.16 (Pittsburgh Post-Gazette)

Can’t You Hear the 1948 Whistle Blowin’ 10.27.16 (New York Times)

Cleveland Indians in 1948: A Story of Integration 10.24.16 (New York Times)

“Heart of Steel” Series from Plain Dealer About Steel Industry in Cleveland 10.16.16 (Plain Dealer)

Confessions of a Rust Belt Orphan (or how I learned to stop worrying and love Akron) by Jason Segedy 10.12.16 (Cleveland Scene)

Collinwood 1908: Bringing a Fire Back into History 10.6.16 (Belt)

“Voter Registration in Ohio” a Short History by Michael Curtin 9.25.16

“Louis Stokes Autobiography “The Gentleman from Ohio” Part 1 is here (Cleveland.com) 8.29.16

“Louis Stokes Autobiography “The Gentleman from Ohio” Part 2 is here (Cleveland.com) 8.30.16

Cleveland Metro Economic Performance is Mixed, According Cleveland Federal Reserve 8.25.16

Great Lakes Exposition: A World’s Fair to Remember Opened 80 Years Ago This summer: photos 7.28.16 (Cleveland.com)

In Cleveland’s Public Square, Rights are Exercised. Loudly 7.26.16 (New York Times)

The Challenge of Keeping Black Families From Leaving the Midwest 7.5.16 (Atlantic)

Greater Cleveland Employment Trends: 2014 and 2015 -March 2016 (Cleveland State University)

“Viktor Schreckengost-The Exchange of Art with the Everyday” – winner of the 2016 Teaching Cleveland website award at History Day 3.5.16

New Images Reveal True Impact of Freeways on Cleveland’s Neighborhoods by Tim Kovach 2/25/16 FreshWater

Is Waterfront Development Paying Off? Nine Takeaways From LWV Forum: Steven Litt 2.15.16 (Plain Dealer/Cleveland.com)

How Local Media Coverage is Forcing Cleveland to Finally Fix Its Lead Problem 2.9.16 (Columbia Journalism Review)

Correcting For Bias: Mansfield Frazier 1.2.16 (Cool Cleveland)

Regionalism in Northeast Ohio-Material on the Subject from the past 10+ Years

Here’s another list of the “Best of 2016” from the Cleveland Scene

About Us

Welcome to the Teaching Cleveland Digital Library, an open source, totally free searchable knowledge base of Cleveland/Northeast Ohio history and public policy for teachers, students. . .anybody. It consists of material from journalists, academics, historians, students and others.

Links can change, so please let us know if a link, file or page fails to open. Thanks.
Article about teachingcleveland.org and Teaching Cleveland history
Email: michaeldavidbaron@gmail.com

Also thanks to our partners in this effort:
Case Western Reserve University
Cleveland Jewish News
Cleveland State University
John Carroll University
Maltz Museum
Ohio Historical Society
Western Reserve Historical Society
And our writers:
Margaret Bernstein
Roldo Bartimole
Michael Curtin
Mansfield Frazier
Joe Frolik
Dr. John J. Grabowski
Brent Larkin
Steven Litt
Bill Lubinger
Randell McShepard
Jay Miller
Dr. Marian Morton
Michael Roberts
Chris Seper
Debbi Snook
Diane Solov
Tom Suddes
Elizabeth Sullivan
Alexander Tebbens
James Toman
John Vacha

Teaching Cleveland Digital is dedicated to Newton D. Baker and his concept of Civitism:
In his four-year tenure from 1912 to 1916 Newton D. Baker fostered Tom L. Johnson’s ideal of a Utopia of Civic Righteousness. He coined a new word to designate his policy; it was “civitism,” once described as a combination of “Home Rule and the Golden Rule for Cleveland.”

Baker believed that the greatness of a city did not depend on its buildings, either public or private, but rather on the intensity with which its citizens loved the city as their home. Such a pervasive feeling would inevitably produce beautiful parks,cleaner streets, honest government, and widespread adherence to justice as the ideal of its social and economic life.

It was his firm intention to make “civitism” mean the same thing for the city that patriotism signified for the nation.
(From CH Cramer’s Biography of Newton D. Baker)

 

Creative Commons License
Teaching Cleveland Digital Media by www.teachingcleveland.org is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

Mayor Michael R. White Interview, Parts One – Five (video)

white-celebrates-gateway  mike-white-1989

Part One Link is Here

Part Two Link is Here

Part Three Link is here

Part Four Link is here

Part Five Link is here

Michael R. White was Mayor of Cleveland from 1990-2002. He was interviewed for Teaching Cleveland Digital on July 24, 2013. Cameras by Jerry Mann and Meagan Lawton, Edited by Jerry Mann, Interviewed by Michael Baron. © 2013 Jerry Mann and Teaching Cleveland Digital.

Part one covers Mayor White’s formative years in the Cleveland neighborhood of Glenville, living in Cleveland during the election of Carl Stokes in 1967 and White’s election as the first African-American Student Union President at The Ohio State University in 1973.

Part two covers his work with Columbus Republican Mayor Tom Moody, his return to Cleveland, working with and learning from Council President George Forbes and his election to Cleveland City Council.

Part three covers the 1980’s in Cleveland when Mayor George Voinovich and Council President George Forbes were in power. White then speaks about being elected Mayor of Cleveland, and his first challenge as Mayor: the baseball team wants a new ballpark, so White spearheads the Gateway development.

From Wikipedia:

White, who grew up in Cleveland’s Glenville neighborhood, began his political career early on during his college years at Ohio State University, when he protested against the discriminatory policies of the Columbus public bus system and was subsequently arrested. White then ran the following year for Student Union President and won, becoming the college’s first black student body leader. He earned a Bachelor of Arts degree in 1973 and a Master of Public Administration degree in 1974.

After college, White returned to Cleveland. He served on Cleveland City Council as an administrative assistant from 1976 to 1977 and later served as city councilman from the Glenville area from 1978 to 1984. During his time in city council, White became a prominent protégé of councilman George L. Forbes. White then represented the area’s 21st District in the Ohio Senate, serving as a Democratic assistant minority whip.

In 1989, White entered the heavily-contested race for mayor of Cleveland, along with several other notable candidates including Forbes, Ralph J. Perk Jr. (the son of former Cleveland mayor, Ralph J. Perk), Benny Bonanno (Clerk of the Cleveland Municipal Court), and Tim Hagan (Cuyahoga County commissioner). Out of all the candidates Forbes and White made it to the general election. It was the first time two Black candidates would emerge as the number one and two contenders in a primary election in Cleveland history.

In Cleveland, incumbent Mike White won re-election against council president George Forbes, who ran as the candidate of black power and the public sector unions. Angering the unions by eliminating some of the city’s exotic work rules, White presented himself as pro-business, pro-police and an effective manager above all, arguing that “jobs were the cure for the ‘addiction to the mailbox,'” referring to welfare checks. [1]

White ended up winning the race receiving 81 percent of the vote in predominantly white wards and 30 percent in the predominantly black wards.

http://en.wikipedia.org/wiki/Michael_R._White

 

Teaching Cleveland Digital