The Buckeye State has new legislation that would gradually eliminate the state income tax over 10 years. The bill, Senate Bill 327, was introduced by Sen. Steve Huffman, and co-sponsored by Senators Antani, Cirino, Lang, Manning, Roegner, Romanchuk, and Wilson.
The state has cut income tax rates in each of the last two budgets, consolidating brackets with a current top rate of 3.99%, residents who earn less than $25,000 also have no income tax liability. This good progress on tax relief has gone hand-in-hand with rising revenues.
The new bill from Sen. Huffman would gradually reduce income tax rates by one-tenth each year, until the state income tax is eliminated entirely.
With 14 states cutting income taxes last year, including a ninth state eliminating income taxes entirely, and more than 10 states working on cuts this year, the race to save taxpayer dollars is heated.
For the most part, Ohio has been focused on returning hard-earned dollars back to Buckeye families and businesses in recent years. Local income taxes remain a huge problem for the state’s economic competitiveness. Ohioans see a higher percentage of their income taken by local government than New York. Yet, the state legislature is doing its part by focusing on reducing tax burdens.
Ohio families and businesses should be excited about the goal of income tax elimination, and rallying to support SB 327.