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Local News

Thursday, October 08, 2009

Tax credit plan criticized here
By LOU WILIN

STAFF WRITER

Area employers are unimpressed with an idea in Washington to give them tax credits to create jobs.

It is the latest economic stimulus idea being researched by President Obama's economic team and by lawmakers, The New York Times reported Wednesday. It could have bipartisan support. But you will not find area employers lobbying for it, despite unemployment rates exceeding 10 percent in Hancock and area counties.

Employers say it would not create jobs.

"People do not staff plants based on tax credits," said Jed Osborn, plant controller for Ball Corp., Findlay. Companies staff plants based on orders they receive or expect to receive, he said.

"You just do not hire people to stand around," Osborn said. "They have to have a reason to be there."

W.C. Wood Co., manufacturer of freezers and refrigerators in Ottawa, has gone from more than 400 employees in December 2007 to less than 200. The tax credit will not reverse that slump, Manufacturing Vice President Dale Rampe said.

"We basically run our plant on orders received," Rampe said.

The RightThing President Terry Terhark has a broad view of the hiring world. His company helps other companies hire employees. He said a job creation tax credit, while well-intended, would do little to stimulate hiring. It would not even sway a company to elevate an employee from part time to full time, he said.

"I just do not think it will drive that activity," Terhark said.

Corporate Research International Chief Executive Officer Michael Mallett agrees.

"For me (a tax credit) would make zero difference because we run our business based on need," he said. "Hiring somebody just because of a tax incentive makes no sense."

Employers said companies will increase hiring when people stop worrying about losing their jobs and start spending more.

The federal government last tried a job creation tax credit in 1977 and 1978 to boost hiring after the 1973-75 recession. Tax credits were awarded for 2.1 million jobs created, but two-thirds of those hirings would have occurred without the credit, said Howard Gleckman, a senior research associate at the Urban Institute, Washington, D.C.

"The bang for the buck (from a job creation tax credit) is pretty low," Gleckman said.

Tax money would be better spent on health care reform, he said. One of the reasons companies are reluctant to add employees after a recession is they cannot afford the health insurance for them, Gleckman said. That is why many companies give existing workers more hours, even overtime pay, instead of hiring more employees and incurring more insurance liability, he said.

Wilin: 419-427-8413,

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1 Comment

KC Allen wrote:
Tax Credits
“ As a business owner, I agree. I brought on an employee this year because of demand (thankfully). As our business grows, I'll need more people - but a tax incentive isn't going to incentivize me. Further, since right now we're still a small company, we can't afford health insurance for anybody yet, so unless they think outside the box and come up with a way to make it affordable without having to dip into my pockets as a taxpayer, it'll still be awhile before we can offer those benefits.

What truly needs to happen is for Ohio itself to lower the cost of doing business here. If the state wants to create jobs here, they need to lure growing companies here who want to expand and hire folks to respond to their growth needs. This is not a federal issue. The feds are freaking out because their plans aren't working - I get that. But this is a problem for each state to solve on their own, and in Ohio it has to do with the high taxation that businesses must cope with. ”
Thursday, October 08, 2009 6:35:41 PM
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Benton Ridge Shooting

This video, released by the Hancock County Prosecutor's Office, shows the shooting of a Lima man who led authorities on a three-county chase ending Aug.24 in Benton Ridge. Be cautioned, the video contains graphic content.
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News Briefs Firefighters discover 20 marijuana plants in house
After fighting a house fire early Monday at 815 Howard St., firefighters found 20 marijuana plants in the residence.

"They ran across it and called us," said police Sgt. Justin Hendren with the Hancock County METRICH Drug Enforcement Unit.

Police seized all 20 plants, and Hendren said charges are pending.

High-powered growing lights, fans, and a box filled with dried marijuana were also found in the house, according to a police report.

Investigators said an electrical short started the fire before 3 a.m. Monday.

The blaze caused an estimated $12,000 in damage to the residence, owned by Amanda Crawford. No one was injured, according to the Findlay Fire Department.

Carey announces holiday closing
CAREY -- Carey offices, including administrative, income tax and utilities, electric, wastewater treatment plant, and public works, will be closed Monday in observance of Labor Day.

The curbside recycling program will be held Tuesday through Thursday, Sept. 7-9.

Findlay trooper named sergeant
Trooper Jacob L. Fletcher, assigned to the Findlay post of the State Highway Patrol, was promoted to sergeant Wednesday by Patrol Superintendent Col. David Dicken.

With the promotion, Fletcher will stay at the Findlay post and serve as an assistant post commander, according to the patrol.

Fletcher began his patrol career in 2002 after graduating from the 139th Academy class and has been assigned to the Findlay post since.

Owens announces holiday schedule
The Toledo and Findlay campuses of Owens Community College will be closed Saturday through Monday for the Labor Day holiday.

There will be no classes and the college offices will be closed.

Classes will resume and offices will open again on Tuesday.

Holiday changes ad deadlines
The Courier won't be published on Monday, in observance of the Labor Day holiday.

Because of the holiday, some advertising deadlines have been moved up this week:

Black and white display advertising for Tuesday's newspaper must be placed by noon Friday. Display advertising for Wednesday's newspaper must be placed by 2:30 p.m. Friday.

Color display advertising for the Thursday, Sept. 9 newspaper must be placed by Friday.

Classified advertising and City and Country advertising for Saturday's newspaper must be placed by 2 p.m. Friday. Classified ads for Tuesday's newspaper must be placed by 2:30 p.m. Friday.

Courier business and advertising offices will close at 3 p.m. Friday for the holiday.