Cybersecdn– Ohio lawmakers have introduced a bold proposal aiming to eliminate the state income tax by 2030. This move, anticipated to significantly impact the state’s financial landscape, is rooted in the belief that it will boost business attraction and retention in Ohio.
State Representative Al Cutrona, advocating for the proposal, emphasizes the potential for economic growth and competitiveness. He asserts that eliminating the state income tax, which generates approximately $10 billion annually, would make Ohio more appealing to businesses and help retain residents who might otherwise relocate to states with more favorable tax structures, like Florida.
The proposal also includes abolishing the commercial activities tax, positioning Ohio as the 10th state to remove such a tax. However, this ambitious plan has its detractors. Democratic State Representative Lauren McNally cautions against the drastic nature of this move, citing concerns about the potential fallout similar to experiences in other states, like Kansas.
Advocates for Ohio’s Future, a nonprofit focusing on health and human services, has also voiced opposition. They highlight the potential $13 billion shortfall in state funding, which could adversely affect vital programs and services. The organization argues that the elimination of income tax might lead to increased reliance on sales and property taxes, disproportionately impacting low- and middle-income families.
Representative Cutrona counters these concerns by suggesting a reduction in government spending instead of increasing other taxes. The debate continues as Ohio weighs the potential benefits against the risks of this significant tax reform.