I get what you’re saying about the max. corp. tax rate.

I never stop resenting the lousy microecon prof I had my freshman year in college. He really turned me off to this stuff.

I haven’t thoroughly reviewed that factbook but yes, I’m aware of it’s existence. I’m going to wrap up the amendment language and head home on the last couple of days - maybe pull in some of that other stuff. Honestly - it’s amazing how many ways there are to slice this damn thing.

And you know, part of me feels badly about it. I mean, what would have been so bad about doing this in two phases - in getting the scholarships and tuition grants set and organized and looking like they would really help and matter. And THEN doing the gambling thing? Sigh.

Jill, thanks for the comment. OL&E folks left two comments, and I lost track of this one (there’s another at a previous post that I think I hit out of the park).

Jill, you did fine. The presentation is clumsy, but I have to assume that the 95 mil is Federal income tax. The highest corporate rate is 35%, but the first couple hundred thou is taxed at a lower rate.

Speaking of clumsy, I’d like to know if they had a CPA firm review the forecast or projections for reasonableness and issue some kind of report. Page 6 of the Fact Book mentioned below refers to “as projected,” which means “if our assumptions are correct, this is what will happen.” That is a LOT less assurance than a FORECAST, which says, if these assumptions we are confident about pan out, this will happen.” BIG DIFF. Assuming it’s a projection, it’s really a “what if” that means nothing, and promises nothing.

Speaking of clumsy, have you downloaded the “Fact book”? There are howlers galore in it. There’s a link at the OL&E Home page. It’s 8.1 mb.

MR. YesOnThree, will the operations be subject to the phasing-in Commercial Activities Tax (CAT) or not, and if not, why not? The rate when it fully phases in is 0.26% of gross revenues (regardless of whether profitable). That rate times the $2.842 bil is $7.4 million. Is the industry getting a $7.4 million a year tax break written into the Constitution?

1. Re: 30% must be put away for college tuition grants. The proposed language fails to provide for putting it away, anywhere. It says that the money shall be paid to the state. That is IT. Absolutely not another single word in the entire five pages, single-spaced typed proposal says who in the state gets it, what they get to do with it while it accumulates, to whom it gets transferred for payment (students in vouchers? directly to the schools?).

Please don’t say that this is for the GA to figure out or the Regents to figure out. The lottery constitution language specifies that a there will be a fund into which the lottery proceeds will go.

The Issue 3 language is sloppy and fails to make similar provisions. You say the GA can’t touch it - but who then will implement this portion of the proposal? Who will in fact say how and to whom within “the state” the money will be paid?

2. Please explain how there will not be a monopoly. Please also explain your rationalization for the amendment language only providing for a $15 million licensing fee when industry experts say that the market value is closer to $200 million and Forest City is offering $50 to PA.

3. As for no other fees or taxes being levied, yes, this language is in a state constitution so, to the extent that the corporate owners have to pay federal taxes, Ohio’s constitution has no say.

However, that state of Ohio itself, its coffers, get nothing. Please tell me which taxes are the taxes you believe will be applied? In a flyer I received today from the Vote Yes on 3 Committee, Payroll taxes and 1% real estate taxes are listed. That’s it. What did you have in mind?

4. Speaking of that flyer, did you know that the numbers on it do not add up?

In big blue numbers it says, 2,842,165,433 Total Est. Annual Gross Slot Revenue

Then it says that the total to college funds, statewide econ dev., addiction services and horse folks, equals 1,278,974,444.

Then, it says that the total to equipment, salaries, wages, benefits, site operations, ad and promo, debt service (what debt service are they talking about by the way? and who gets that interest and payment on debt?), payroll and real estate taxes, and “net total proceeds” (of 9.5% or $270million) equals 1,563,190,988.

NOW, under THAT, it says, “Net proceeds after tax: $175,503,715.”

What is the difference between the 270million net proceeds and the $175 net proceeds after tax?

Net total proceeds should mean net total proceeds.

So - is that 270million still gross total proceeds? And the $175Million is net total, being the amount after taxes?

Which taxes are you applying to bring the number down from a net of $270 to a net of $175? That $95million difference, or about 35% difference - where is that all going? Is that what the federal government gets?

Help.

Reason 12 and 10: A monopoly will not be created. The tax language that’s quoted means that no new taxes will created but it does NOT exempt owners from paying taxes as is current law. Less than 10 percent of the slot revenue would go to facility owners and they still have to pay taxes on that money…after paying regular taxes and operating expenses.

Reason 11: Issue 3 would guarantee that 30 percent of the slot revenue MUST be put away for college tuition grants. If legislators want to use this money, another ballot initiative will have to be brought to the people of Ohio to be voted on.