Ohio House Republican proposes eliminating state income tax

Rep. John Adams, R-Sidney, introduced legislation that would eliminate Ohio’s state income tax.

Adams said his proposal, H.B. 400, to phase-out the income tax would be a major boost to Ohio's economy. “First, it will stem Ohio's relative population loss. Second, it will increase the long-run rate of economic growth in this state,” Adams said. “Third, it will encourage our best and brightest citizens to work more, benefiting their own families and our state's economy more widely.”

About 40% of state revenues come from the personal income tax.  Ohio Democratic Party Chairman Chris Redfern blasted Republican proponents for failing to identify how they would pay for the tax cut.

Rep. Terrence Blair, R-Washington Township, introduced another proposal that would prohibit passage of a budget that exceeds 97% of general revenue fund receipts from the previous two years. The bill (H.B. 396) would also cap at 25% the amount of money that could be transferred from the budget stabilization fund to the GRF.

“We all witnessed how state government was stymied in its budgeting process as revenue forecasts were being revised downward nearly every week,” Blair said. “The present budget methodology simply does not encourage the necessary discipline to review and prioritize spending, but rather leads the government to focus on revenue by looking for new ways to tax the citizens of Ohio. The time is right to focus on spending.”

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