Getting Rid of the Ohio State Income Tax
Published April 21st, 2008 @ 8:00 am. Tags: john adams, taxesCOLUMBUS — A group of legislators wants to phase out the state’s income tax in 10 years and said doing so would halt Ohio’s population loss to other states and create jobs.
State Rep. John Adams, R-Sidney, and the region’s other legislators are part of a group of 19 pushing the bill introduced Monday.
“This idea is not conservative or liberal, left or right, it is just simple economics,” Adams said. “When we tax the risk takers and job creators, we will have less of them.”
Other states are flattening their top rates and nine states have no income tax, Adams said.
Reducing the state’s tax burden will draw more business and capital to the state; more people paying other kinds of existing taxes make up the difference, they argue.
Adams points to New Mexico, which flattened its top income tax rate and now enjoys budget surpluses and fast-growing tax revenue.
Ohio’s income tax provides about 43 percent of the state’s revenue.
Ohio has a high tax burden, Adams said, citing an economic competitiveness index of states produced by the American Legislative Exchange Council. The council is a conservative association of legislators who promote limited government and free markets.
Ohio ranks 47 out of 50 in ALEC’s 2007 study, including ranking 45th in the top personal income tax rate and 48th in the top corporate income tax rate. Between 1997 and 2006 the state has lost 362,601 people as the result of those who have moved to the state compared to those who have left it.
With the socialist Third Frontier Program and Gov. Strickland’s foolish plans to “invest” tax dollars in risky job creating schemes, Rep. Adams’ plan is the only real, long-term way to encourage more economic growth and job creation within Ohio. Ohio’s state and local tax burden, according to the Tax Foundation, is the 5th worst in the nation. If the goal is “economic stimulus”, there would be no better shot in the arm to Ohio’s economy than scrapping the state income tax.
Too bad there aren’t enough real Republicans in the Ohio legislature to get the job done.
Until Ohio manufacturing wages and benefits are roughly equal to Chinese wages shipping costs there will be no manufacturing rennaisance in Ohio, which means probably never. The auto parts industry will be largely offshored in the next decade, so don’t expect much improvement, and neither party will be able to do much about it.
Certainly there is plenty of room for tax reform, but at the same time we need funding for infrastructure and education.
Apparently the GOP can come up with nothing better than dramatic press releases hyping nonsense.
Unless Ohio becomes a tourist mecca year round or we find huge pools of oil.
Creative destruction! So be it. Our trade deficit is responsible for this country’s capital investment surplus, which creates jobs and grows the economy.
And the dirty secret that you foolish protectionists ignore is- China isn’t why manufacturing jobs are disappearing. The truth is, manufacturing jobs world wide are decreasing, while output is increasing, which means manufacturing is becoming more efficient. So the bad feelings you have towards China should be directed towards technological advancement and progress.
Funding for education? I’d end such funding if I could, Mr. Rustbelt.
Exactly admin.
Education is sufficiently or overly funded . More students need to work while in college. The curriculum isn’t that difficult.
And don’t get me started on funding for K-12. As a former board member at a central Ohio suburban public school district, I can assure you that operating funds are plenty for any non rural school.
So, I too see Ohio’s income tax and overall tax structure as the problem.