Posted January 03, 2013 in Press Releases
State Reps. Cheryl Grossman and Michael Henne have the right idea. The Republican lawmakers want to bring uniformity to the municipal income tax in Ohio. They have in mind easing a burden on businesses, firms often facing multiple jurisdictions, rules and forms, the hassle diverting precious attention from first purposes.
In early November, Grossman and Henne unveiled proposed legislation. The bill reflects the input of the Ohio Society of CPAs, long an advocate for streamlining municipal tax codes. The proposal promises important strides forward. Grossman also has stressed that the legislation is a starting point, even after two years in the making.
That open-mindedness is constructive, especially in view of concerns raised by the Ohio Municipal League. Note the context: Cities have faced a rough time at the Statehouse. The current state budget slashes the Local Government Fund and makes other changes that have reduced the resources going to cities by more than $1 billion. With the new year, the state estate tax disappeared, costing cities $200 million a year.
Proponents have talked about taking a “revenue neutral” approach, ensuring no loss of resources for municipalities. That is a fair standard. Keep in mind that businesses and the rest of us gain from sound public services supported by local revenues.
One constructive contribution to the discussion arrived this week. Policy Matters Ohio offered, among other things, a reminder of what constitutes effective tax reform