Posted on 02/06/2024 5:21:38 PM PST by nickcarraway
A new bill making its way through the legislature in Columbus could change how much you bring home on payday.
And lawmakers are hopeful it could bring a new frontier to Ohio.
The proposed bill would slowly cut state income tax before completely getting rid of it in 2030.
The lawmakers who introduced the bill told Dayton 24/7 Now reporter Malena Brown it's worked in many other states and can work in the Buckeye State. Those states include Texas, Florida, Nevada and Tennessee. The Volunteer State axed its income tax three years ago. Poll reveals dissatisfaction and mistrust in government over tax spending Those states now rely on sales tax, tourism, casinos and other boosts. But those states have higher sales tax. Florida's sales tax is 6%. While in Texas it is 6.25%. Both are higher than Ohio's at 5.75%.
State income tax provides funding for programs like Medicaid and public transportation but the majority goes to K-12 public education.
Some local leaders say they don't think relying on a sales tax will be enough.
"First of all, any type of tax revenue cut is negative. I really don't understand the rationale with making these adjustments right now," said Dayton Mayor Jeffrey J. Mims Jr.
On the other side, Senator Steve Huffman told Brown that the tax cuts will bring more people and revenue to the state.
"I don't see it as a negative, I see that it drives people to those places. And if you look at the city of Dayton, people are leaving because they are overtaxed," Huffman said.
Montgomery County has a 2.25% local income tax.
Local leaders always want more tax money. Can’t rely on their opinions. Ohio doesn’t have any overriding need compared to states without an income tax, so I would have to believe this is a good move for Ohio. We would probably even accept a small sales tax increase along with it, even if just to do away with the annoying stupidity of state tax returns every year.
Good luck with that!
There are a bunch of states like that including some you wouldn’t expect.
Apparently a few Republican lawmakers here in Indiana are expanding the reduction in the income tax to totally eliminating it. This year it fell a smidgen from 3.25 to 3.15%, but I’m not kicking. Also, the state has fully implemented military retirement pay being totally free of income taxes.
NH doesn’t have state income taxes either.
The problem is, they will raise other taxes to make up for it.
Sheesh. California has (depending on the city/county) up to 9.5% sales tax. This on top of a 13% top tier income tax. And it still is running a $60 billion deficit.
And I fear it will be the property tax. Sales and income taxes are pretty deterministic: earn X and pay Y, or buy X and pay Y. Property valuation is a crap shoot. Additionally, they stack up the rates for a dozen taxing authorities. Of the three, I would first dump the property tax.
You at least have a modicum of control with a sales tax. You can’t avoid necessities but if 6.5% makes a discretionary item unpalatable you don’t have to pay it. And as you said, get rid of the nuisance of filing a state return and having state taxes taken from paychecks. All said it’s probably a good thing for most people. The working poor and fixed income people may need a break somewhere. Perhaps factor in a small rebate equal to the tax on basic necessities for some households who apply, or even for everyone.
Also, if you do this, get a firm grip on property tax increases if you don’t already. CA passed a constitutional amendment in the 1970s that prevents the state from increasing property taxes more than 1.5% per year from the assessed value. Reassessments only occur when a property is sold to a new owner.
Make the entire tax code simple to understand and totally transparent.
Sales tax. Food sales at grocery stores are exempt.
Yes. See my #10. A reform like this should factor in all taxes in all areas, not just income. Reform the entire system and lock it into the state constitution. Some will have to go up as other go down or go away but it should address all the taxing authorities at the same time.
The “Volunteer State” NEVER had a work income tax.
They have a Hall tax for interest income from 1929.
It was repealed in 2021.
TN is prosperous, others trying to figure out why.
| Ohio Taxable Income | Tax Calculation |
|---|---|
| $0 - $26,050 | 0.000% |
| $26,051 - $100,000. | $360.69 + 2.750% of excess over $26,050 |
| $100,000- $115,300. | $2394.32 + 3.688% of excess over $100,000 |
| more than $115,300. | $2958.58 + 3.75% of excess over $115,300 |
I might add that you will pay darn near 9.75% on just about anything you purchase in TN.
That is your sales tax.
Don’t buy it, don’t pay it. Simple as that.
Also, 100% of gas tax goes to the highway dept.
Libtards been trying to get into that for years.
Not gonna happen.
You might keep your ears open to see what legislators would wish to replace this tax with. I can’t believe they would just agree to do without the revenue the tax brings in & not replace it with anything. Such a move has been suggested in my state, but not before they already suggested the “replacement” tax. Of course, one is led to believe the overall result would be an “improvement” in the overall tax situation. That is, if you care to believe that. I don’t, and hope that the other voters would not, either.
You are correct. Property taxes in NH are higher than other states.
And then, too, the burden falls on property owners, although they can pass that along in rent. However, when it’s sales tax, it’s all going to be the responsibility of what the person buys.
For sure.
What is atrocious is that the solution is always to raise other taxes. NOBODY addresses cutting pork and wasteful spending on pet projects used to buy votes.
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