The 2005 Tax Overhaul, Business and Ohio’s Economy

In mid-February of 2009, Policy Matters Ohio briefed a number of Ohio’s state legislators and their staff on Ohio’s economy, the 2005 tax reform, and our state budget situation.

Since Ohio’s 2005 tax reform package was enacted, Ohio lost ground compared to the rest of the nation in employment, GDP per capita, and real personal income per capita. House Bill 66, which overhauled Ohio’s tax policy with the stated purpose of strengthening Ohio’s economy, has not only has shown no signs of success, but has drained our state budget of the much need revenues to turn around Ohio’s depressed economy by investing in our infrastructure and workforce, and stabilizing families as they weather the current economic storm.

In order to stop the bleeding and turn Ohio around, by raising well over $2 billion dollars that can be used to help stabilize our economy and invest in our future, the responsible way, Policy Matters recommends:

• restoring the top tax rate on the wealthiest Ohioans,
• restoring the corporate income tax,
• closing ineffective tax loopholes,
• returning the remaining personal income tax rates to 2007 levels, and
• establishing a state earned income tax credit for low-income Ohioans.

For more information, please see the materials below which were supplied to attendees of the briefing.

Legislative Briefing Powerpoint

Business Tax Revamp: A deficit in the making

The 2005 Tax Overhaul and Ohio’s Economy

Limiting Loopholes: A dozen tax breaks Ohio can do without (Executive Summary)

Limiting Loopholes – Table of Tax Loopholes

A Step Toward Fiscal Balance: Options for Ohio’s Income Tax (Press Release)