AFP-Ohio Releases New Study on Benefits of Pro-Growth Tax Reform
With the launch of our Buckeye Blueprint campaign in 2021, we traveled the state to hear from folks on the issues that most impact them. One of the most important issues on the minds of the Ohioans we spoke to was the need to improve our economic competitiveness through state and local tax reform.
So, we conducted a study on Ohio’s economy, how it stacks up against it’s neighbors, and the impact common sense tax reform can have on the state. With “Tax Reform in Ohio: An Economic Analysis,” we hope to provide policy makers in the 135th General Assembly with some suggestions on how to boost Ohio’s economy and improve the lives of Buckeye families, particularly by eliminating the personal income tax.
Below are some toplines from this study. Please scroll further down or click here to access the study.
Study Shows Benefits of Pro-Growth Tax Reform in Ohio
- A new study by Americans for Prosperity Ohio and the Buckeye Institute lays out how tax and budget reforms can generate massive new economic growth for the state.
- The study looked at a range of reform scenarios to eliminate the state income tax, each generating around $10 billion or more in economic growth and adding tens of thousands of new jobs to the state.
- For example: Phasing out the income tax over ten years along with cutting government spending could generate $12.9 billion in growth and add over 80,000 jobs.
- The study proposes pairing tax cuts with other responsible reforms such as cutting wasteful government spending and closing loopholes.
Tax Reform Needed to Revitalize Ohio Economy
- While other states have taken action to reform their tax code, Ohio is at a decision point for becoming the first state in the mid-west to eliminate its personal income tax.
- While Ohio has cut tax brackets and lowered the top marginal rate each state budget in recent history, it has not overhauled its tax code since 2005, or nearly two decades.
- At least 16 states have cut individual or corporate tax rates since 2021, including at least four states that have implemented cuts to both.
- The Tax Foundation ranked Ohio 35th overall and 41st in individual taxes in their 2022 State Business Tax Climate Index.
Time for States to Lead Under the Disastrous Biden Economy
- The economy is a disaster under President Biden, and Americans are looking to the states to implement pro-growth policies.
- Consumer sentiment reached all-time lows in 2022 as Americans faced soaring prices.
- Last year, the U.S. stock market logged its worst year across all major indexes since the 2008 crisis.