Myth Buster

- March 21, 2013
   

In this edition of our eNews — What people are looking for when they move between states, should Ohio squander its economic potential, more evidence that a state EITC is a small investment that makes a big difference, and Policy Matters takes a bow.

Why move? – Reducing state income taxes will have no discernible impact on whether people move in or out of Ohio, according to our latest report, “The Tax Flight Myth.” People move for jobs, housing, family – not taxes. Policymakers should consider the facts before cutting taxes for Ohio’s most affluent, again.
 
Best way – “Additional income tax cuts will eventually force the state to cut back further on investments in education, infrastructure, and other areas that over the course of history have proven to be the best ways to create jobs and promote prosperity,” said Michael Mazerov, senior fellow at the Center on Budget and Policy Priorities, in testimony before the Ohio House Finance Committee. “‘So the question before Ohio policymakers – as it is for those in other states – is, simply, ‘Will you risk squandering your economic potential?’”
 
Just do it – An Ohio Earned Income Tax Credit would benefit 822,000 working families, providing qualifying households an average of $446 annually. At 2 percent of the state budget for a credit set at 20 percent of the federal EITC, it’s a small investment that makes a big difference. If Ohio policymakers move ahead with income tax cuts and a sales tax expansion, an EITC makes even more sense.
 
Awarding work – We’re proud to be named 2013 Public Citizen of the Year for Region 3 of the National Association of Social Workers-Ohio Chapter. Amy will take a bow Friday at a ceremony at Cleveland State University.

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