HomeOhio NewsOhio Republican lawmakers push to eliminate state income tax

Ohio Republican lawmakers push to eliminate state income tax

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Ohio – Republicans in Ohio are leading a big plan to get rid of the state income tax by 2030. This is a risky move that could change the financial lives of millions of Ohioans. This groundbreaking proposal is currently making its way through the legislative corridors of Columbus. It would greatly increase the take-home pay of Ohio residents, marking the start of what lawmakers hope will be a new era of prosperity for the Buckeye State.

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The main idea behind this legislative push is a step-by-step plan to gradually lower the state income tax until it is gone completely within seven years. In interviews with Dayton 24/7 Now reporter Malena Brown, supporters of the bill have said that similar bills have worked well in states like Texas, Florida, Nevada, and Tennessee—Tennessee getting rid of its income tax just three years ago—as a convincing model for Ohio’s financial future.

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States that got rid of their income taxes now rely heavily on other sources of income, like sales tax, tourism, and casinos, to keep their budgets full. It’s important to note, though, that these states’ sales taxes are higher than Ohio’s, which is currently 5.75 percent. Florida and Texas charge 6.2 and 6 percent, respectively. If Ohio got rid of its state income tax, it would have to rethink how it pays for important services like Medicaid, public transportation, and especially K–12 public education, which gets a lot of money from income taxes right now.

People have had doubts about the proposal. Dayton Mayor Jeffrey J. Mims Jr. was worried that the shortfall in revenue could not be made up for by raising sales taxes alone. He questioned the timing and reasoning behind the proposed tax changes. On the other hand, Senator Steve Huffman supports the tax cuts as a way to bring more people and businesses to Ohio. He says that the current tax system is pushing people out of cities like Dayton, where the local income tax rate is 2.25 percent.

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Ohio is now in a tough spot. With the proposed bill to get rid of the income tax, the state’s approach to taxes and public funding would be very different. As the Buckeye State thinks about joining the states that don’t have a state income tax, lawmakers, local leaders, and residents are all looking at the possible effects. This is because a big change in fiscal policy like this comes with both economic opportunities and challenges.

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