Taxes, shmaxes. Who needs 'em?! 🥳
Ohio Republicans in the House and Senate just dropped a couple of new proposals to trash the state's income and commercial activity tax. 🚫 Some say it's the best idea since sliced bread. Others think it would cause a major meltdown. 🥴
Here’s Five Fast Facts on the new proposals:
- 📢 Here Ye, Here Ye - In a recent press conference, two nearly identical bills to nix the state income tax were introduced by Representatives Adam Mathews (R-Lebanon) and Brian Lampton (R-Beavercreek) and Senators George Lang (R-West Chester) and Steve Huffman (R-Tipp City).
- 📉 Scaling Back - Each proposal seeks to reduce the tax progressively until eliminating it completely in 2030. The Senate's proposal would get to a flat tax by 2026 and the House's by 2028.
- 🕳️ Mind the Gap - If the income tax is eliminated, it'll leave the state with a $13 billion deficit. Those in favor of the proposal say there are several options to fill this gap, including increasing the sales tax, decreasing certain spending, and just allowing the economy to do its thang.
- 👎 Thumbs Down - Critics say the middle class would be hurt the most if the bill passes. They currently pay the most per capita on taxes. An increase in sales tax would also shift the burden to low income Ohioans. They also feel like relying on increased economic activity is a crapshoot.
- 🫣 Dust in the Wind - Critics also point to Kansas as an example of what could go wrong if slashing the income tax fails. Kansas did away with their income tax in 2012, but reinstated it in 2017 after losing hundreds of millions of dollars in revenue.
🔥Bottom line: Ohio's economy is buzzin' these days, especially with all the big business investments underway. However, many feel like they'll need proof of an economic boom before doing away with income tax. Plus, raising taxes elsewhere kinda seems like robbing Peter to pay Paul. We'll see what ultimately shakes out.
Are you for or against no income tax in Ohio?
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