Ohio Lawmakers propose eliminating state income tax
Some state lawmakers are also looking to do away with State Income Tax in Ohio.
Those for it - believe it will incentivize businesses to move here, while opponents believe the tax cut will cost Ohioans more in the long run.
Ohio State income tax generates about $10 Billion dollars per year---but a new proposal introduced in both chambers aims to eliminate that tax by 2030...something state rep Al Cutrona says will alleviate a huge burden for residents.
"This will attract more businesses to come to the state of Ohio it will help us keep our residents that we are losing to states like Florida.", Cutrona explained.
This would also axe the commercial activities tax(CAT), otherwise known as as the cost of doing business. Ohio would become the 10th state to do away with the tax.
(D)State Representative Lauren McNally voiced her opposition to the proposal saying in part, "It's a very drastic measure to take without a plan support consequences that the bill would create.", pointing to experiments such as Kansas.
Advocates for Ohio's future, a nonprofit that provides health and human services to those in need is also advocating against this proposal.
"The Ohio General Assembly has been continually cutting income taxes over the last 20 years, and the proposals introduced this week would leave a $13 billion hole in the funding coming into the state to fund the government and countless vital programs. Without revenue from the income tax, attention would turn to increasing sales taxes and property taxes, which are disproportionately burdensome on low- and middle-income families. To list only a few of the health and human services challenges Ohio is facing right now, we are in the midst of a child care crisis, we have a shortage of 270,000 affordable home rentals, a gap which is increasing each year, many Ohioans are facing food insecurity and hunger, and many older Ohioans and Ohioans with disabilities who are in need of direct care support in their homes aren’t able to access care due to workforce shortages at direct care agencies. Ohio has the money to address many of these challenges, and Advocates for Ohio’s Future will continuously advocate against diminishing the state’s General Revenue Fund through tax cuts to wealthier Ohioans at the expense of support to low-income Ohioans.", said Sarah Hudacek, Interim Director at AOF.
Other states like Texas, Nevada, and Florida raised rates such as property tax, sales tax, gasoline tax, etc. Cutrona says he isn't promoting other taxes.
"You make up that deficit, not by robbing Peter to pay Paul and increasing taxes elsewhere--what you do is cut big government spending.", Cutrona concluded.