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Ohio - Unions, State Income Tax - Big Job Losses - Texas - Non-Union, No State Tax - Big Job Gains

Mick McNesby

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Since 2000, Ohio has lost 200,000 manufacturing jobs, while at the same time home foreclosures are the ninth highest in the nation. Family income, adjusted for inflation has also declined.

As is so often the case, especially with the selective reporting of the liberal media, isolated facts bring out the doom and gloom side of things, true in this case, but with no attempt to dig, for sensible explanations.

This kind of laziness, usually leaves the impression that the free-market has once again failed, leading logically to the conclusion that if government was involved, the problem would not exist.

Quite the opposite is true.

Nafta Becomes the Scapegoat

Ohio is just one of the big losers of auto jobs and auto plants. Michigan and Indiana have a similar problem. Are the companies and jobs that are leaving, moving their plants and jobs to foreign countries? No they're moving to other states, including Texas.

Why would they do that? The American Legislative Exchange Council ranks Ohio 47th out of 50 in economic competitiveness.

What are the specifics of Ohio's poor economic competitiveness factor?

Ohio not only has a state income tax, it has the sixth highest personal income tax rate in the country, just under 9%. Not satisfied with having just the sixth highest income tax on individuals, for corporations, the tax moves up to third highest in the nation at 10.5%, prompting a derisive slogan throughout the state, which says: “Ohio lays out the red carpet for companies - when they leave the state. "

What hurts Ohio workers even more is the damage done by the United Auto Workers.
Ohio is a “closed shop" state, which means workers can be forced to join a union whether they wish to or not.

Texas: No Forced Unions, No State Income Tax

Foreign owned companies-those that bring jobs to Americans-completely shun “closed shop" or forced union, states. Most such jobs pay better than those lost.

Texas, is a “right to work" state, where workers can make their own decision on whether or not to join a union.

Texas has had enormous job growth, going back to 1997, adding 1,615,000, compared to Ohio's loss of 10,400.

At the end of December 2007 the unemployment rate in Ohio, was higher than the national average by a full 1%. In Texas unemployment was significantly below the national average at 4.5%.

Exports from Texas have yielded $150.9 billion in revenues. In Ohio exports have yielded one-fourth of that bringing in $37.8 billion.

Per-capita income growth has been 55% in Texas, 43% in Ohio.

In manufacturing, the sector that has cost Ohio 200,000 jobs, Texas has gained 36,000

The powerful special interests, in this case, the United Auto Workers, excessive taxes and government meddling, have once again resulted in unnecessary, devastating losses.

That never stops such diversion from nanny-state forces and all who conspire with those forces, to shift the blame to free-market forces.

In this case, Nafta.

Mick McNesby is a former tax advisor, consultant and negotiator. He was a frequent guest on political talk shows in Atlantic City, N. J. , discussing the benefits of the lower cost of government. He can be visited at While there find daily tax tips from the IRS

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