A hot topic of discussion amongst taxpayers and public employers alike is how to properly manage our public employee pension systems and make sure that pension obligations are met.
In June 2012, the Government Accounting Standards Board (GASB) issued Statement 68, requiring governments that provide defined benefit pensions to recognize their long-term obligation for pension benefits as a liability on their financial statements.
In Ohio and across the country, public employees provide their labor to a public employer, in exchange for wages and a benefits package, which includes a promise of a future pension.
Traditionally, public employees saw this promise of a future pension, as a trade-off for their historically lower wages than those employed in the private sector. GASB states that pension obligations are part of the “employment exchange,” and should be reported by the government as a liability since they received the benefit of the exchange.
Real Problems or Paper Problems?
Earlier this month, the U.S. Department of the Treasury announced new rules to limit tax benefits for US companies merging with foreign corporations or moving their global headquarters overseas to avoid the country’s double taxation of profits.
Known as “corporate inversions,” such arrangements were recently brought to the public eye when Miami-based Burger King purchased the Canadian breakfast-food chain Tim Horton’s.
Often, the motivation for an inversion is the...
This month, the Ohio Supreme Court agreed to hear a dispute between former Chicago Bears linebacker Hunter Hillenmeyer and the City of Cleveland over the constitutionality of the city’s special tax on high-earning athletes visiting the city to play sports.
Hillenmeyer — joined in his lawsuit by professional unions representing all four major U.S. sports — claims that the city erred in levying taxes on him for games played in Cleveland Browns Stadium between 2004 and 2006.
Ohio law prohibits...