(The Center Square) – The Senate’s proposed Ohio budget was back in front of the Finance Committee on Wednesday for the first time since Republican leadership called its two-year plan bold.
The plan, which includes the final phase-in of a flat income tax rate, the elimination of property tax levy options and a ban on certain school districts from asking for new taxes, is getting both applause and criticism.
The proposal drops Ohio’s state tax rate to 2.75% for all, except for those making less than $26,050 a year, who would not pay taxes. If passed, Ohio would become the 15th state with a flat tax rate.
“This is good news for hard-working Ohioans just entering or returning to the workforce,” said Finance Chairman Jerry Cirino, R-Kirtland. “Reducing the tax burden has generated substantial returns in the form of economic development.”
Americans for Prosperity-Ohio called the plan an important step toward eliminating the state income tax.
“Ohioans have been asking for real tax reform, and the Senate’s budget delivers,” said Donovan O’Neil, AFP-Ohio state director. “Moving to a 2.75% flat income tax not only gives relief to working families today – it also builds momentum toward a future where Ohioans keep even more of what they earn. This marks a major step forward in our march to a 0% income tax and makes Ohio the most competitive state in the region.”
Policy Matters Ohio Executive Director Hanna Halbert called the plan a billion-dollar tax break for the wealthiest in Ohio and leaves the middle class alone.
“The defining characteristic of this budget is how badly it fails to generate revenue to meet Ohioans’ needs,” Halbert said. “Even as Ohioans demand fairly funded schools, property tax assistance, and child care intervention, our state lawmakers turned their backs. Instead, this budget prioritized the wealthiest Ohioans with a fiscally irresponsible $1.1 billion income tax cut. Flattening our personal income tax does nothing for the overwhelming majority of Ohioans making less than $100,000 while starving the services Ohioans depend on.”
Senate Democrats also criticized the overall budget plan for proposed cuts to foodbanks and libraries across the state, along with taxpayer funding for the Cleveland Browns new stadium in Brook Park.
“This budget is somehow even worse than what we got out of the House,” said Sen. Bill DeMora, D-Columbus. “It is a spit in the face of all Ohioans. This budget still screws foodbanks and libraries, eliminates the Ohio Elections Commission, and funds the billionaire owners of the Browns instead of alleviating the property tax crisis, the mental health crisis, or any of the actual problems facing this state.”
