AFP-Ohio Applauds Bill Eliminating State
The bill, sponsored by Representative Adam Mathews, would phase out the state’s personal income tax over a six-year period and do away with the commercial activity tax (CAT) on businesses. Both changes would make it easier to work and do business in the Buckeye state.
“Eliminating the state income tax must be a part of any meaningful, long-term tax reform package,” said Hannah Kubbins, AFP-OH Legislative Director. “Reducing and ultimately eliminating the personal income tax will attract new businesses and individuals who want to relocate to the Buckeye state and will also benefit existing residents and small businesses. We applaud Representative Mathews for sponsoring this bill, and we urge the entire General Assembly to prioritize the elimination of the income tax without raising other tax rates.”
Ohio took in nearly $6 billion more than expected during the last fiscal year, and AFP-OH has long urged lawmakers to return the funds to taxpayers by reducing, and ultimately eliminating, the income tax. The proposed bill, filed today, aims to reduce and reprioritize the state’s spending by identifying over $8 billion that should be cut from the state budget.
“Ohio is ready to reclaim our role as the economic engine of the Midwest. Bold action is necessary and possible, as we reign in the size of government, simplify taxes, and empower businesses and families to thrive,” said Rep. Mathews, the bill’s sponsor.
As part of AFP-OH’s Buckeye Blueprint 2024 legislative agenda, the organization championed tax cuts for hardworking Ohioans in the most recent state budget. AFP-OH has also looked at tax reform scenarios that would allow for the state to eliminate the income tax while also generating around $10 billion or more in economic growth and adding tens of thousands of new jobs.