DAYTON, Ohio (WDTN) – State Senator Steve Huffman (R- Tipp City) wants Ohio to join a group of states that do not have an income tax.
“We can start to be like eight other states like Tennessee, Texas, and Florida that have no state income tax, that are really doing well in this economy,” Huffman explained.
Huffman introduced Senate Bill 327 on Tuesday. His plan would expand on policies already in place. Since 2011, the state cut its nine tax brackets down to five, with its highest tax rate now just under four percent. Huffman said the state is still generating revenue despite these gradual decreases.
“We’ve decreased it by about a third, but we collect the same amount, 8.2 billion dollars, even though it’s down by about a third,” Huffman said.
The proposal would decrease the state income tax by 10 percent each year for 10 years until it is fully eliminated.
But how would the state offset that revenue? Dr. Marc Clauson, a professor of history, law, and honors at Cedarville University, said there are several ways to make up the money.
“You can use consumer taxes, sales taxes more than you do now. Or you can rely upon just growth, and that has kind of worked in some states, like Florida,” Dr. Clauson explained.
Huffman believes eliminating the state income tax would generate enough growth and keep more money in the pockets of Ohioans.
“You look at the rainy day fund that we continue to put money in. The last two budgets we’ve re-appropriated billions of dollars that we didn’t spend in the budget that we put back in the budget to spend again. So rather than putting it back in the budget, we can give some of that back to the people who gave it us. It can be theirs to spur the economy in the state of Ohio,” Huffman said.