CNS News–In a significant legislative move, a group of Ohio lawmakers, including Reps. Adam Mathews, R-Lebanon; Brian Lampton, R-Beavercreek; and Sens. George Lang, R-West Chester; and Steve Huffman, R-Tipp City, have proposed an ambitious plan to eliminate Ohio’s individual income tax over six years.
This tax currently contributes over $10 billion to the state’s coffers, accounting for nearly a quarter of Ohio’s general revenue. During a press conference held on Tuesday, the lawmakers unveiled two distinct plans aimed at initiating the phase-out process. If enacted in 2024, these plans would gradually reduce the income tax rate each year, reaching zero by 2030.
Notably, the tax rate for Ohioans earning over $100,000 will decrease more rapidly compared to those earning between $26,001 to $100,000. The proponents of this plan argue that reducing taxes will expand the tax base by stimulating economic activity and attracting businesses to Ohio. However, they have not yet provided specific strategies to offset the considerable revenue loss this plan would entail.
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The state is expected to conduct hearings and town hall meetings to discuss the legislation and gather public input. Critics, such as Ben Stein from Policy Matters Ohio, a left-leaning thinktank, have expressed concerns over the potential negative impacts of this plan.
They argue that the elimination of the state’s only progressive tax could lead to increased inequality and necessitate either hikes in other taxes or significant spending cuts. In contrast, Greg Lawson from The Buckeye Institute, a right-leaning think tank, supports the move but emphasizes the need for prudent spending reforms to accompany the tax cuts.
He points out the necessity of addressing significant costs in areas like public education, Medicaid, and prisons. As the debate unfolds, the success of this bold legislative initiative remains uncertain, given the mixed history of similar proposals in the past.
