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Joe
Uecker
State
Representative
4/18/05
Ohio’s
new Tax Reform is on its way.
Last
Tuesday, I delivered on my very first campaign promise: To
fight for tax reform in Ohio. This was one of two major
issues as I spoke with people at their door steps in my
door-to-door campaign last year. House Bill 66, the
2006-2007 Budget Bill passed the first of three stages on
its’ way to becoming the first re-write of the
commercial and personal tax code for Ohio in about 50
years. Armed with a Ph.D. in Economics from Case Western
Reserve, Representative Sally Kilbane (R-Rocky River),
Chairperson of the House Ways and Means Committee,
authored the long awaited historic bill. This new tax plan
lowers the overall tax rate while broadening the base. It
also lowers the personal income tax rate by 21% phased in
over 5 years. For those who have seen the hardest of
times, making $10,000 a year or less, will not have to pay
any income tax. This new plan has been
enthusiastically endorsed by the Ohio Chamber of Commerce
(and many of the individual Chambers) as well as the Ohio
Economic Development Association, Ohio
Farm Bureau Federation, Ohio
Manufacturers’ Association, Ohio
Society of CPAs, Ohio
State Bar Association, and the Ohio
State Medical Association to name a few.
During
these recent tough economic times, when we need it the
least, Ohio’s personal income tax is one of the highest
in the nation, putting a great burden on Ohio’s
families. Since most small businesses pay under the income
tax, the high-rate income tax has almost single handedly
taken responsibility for Ohio losing jobs and not
attracting new businesses.
The
second major issue many people spoke to me about was
“Jobs”. It goes hand in hand with tax reform. Ohio
needs more and better paying jobs. However, Ohio’s
tangible personal property tax is significantly higher
than in any of our neighboring states. This tax penalizes
the investments needed to build Ohio’s businesses. At
the same time, Ohio’s corporate franchise tax (a permit
fee to have a business in Ohio) is aggressively high and
scares most businesses from even considering Ohio.
Experienced and long time businesses know that a good
accountant and decent lawyers will find the oh so many
loopholes… and end up not paying hardly any tax at all!
But the rate itself is so high, it discourages businesses
from even considering Ohio.
From
the Ohio Department of Taxation, here are the numbers this
new plan will produce: 5.3 million Ohio taxpayers will see
a personal income tax cut. 550,000 low-income
taxpayers will not have to pay any income tax.
300,000 small business owners who pay taxes through the
personal income tax will see their rate cut by 21 percent.
The average Ohio family of four will see their income
taxes reduced by approximately $550.
Over
the coming weeks you will hear some horror stories of how
this new tax reform will hurt some businesses; several
have already been identified. Suffice it to say that
while the Ohio Senate is working of their revisions to the
budget bill, we will be working to try to make the proper
revisions to the plan to keep this new reform from chasing
people out of business in Ohio.
What
about the spending side of the budget bill? Well, that’s
another story. Since I have only limited space here, I
will reserve comments on the spending side of the bill for
next week.
Remember,
this is only part-way done. The Ohio Senate has about 4
weeks to tinker with the proposed changes to the Governors
proposed budget then it comes back to the House. A
lot can change between now and then. We’ll see.
Joe
Uecker
State
Representative
Ohio’s
66 District
Representing
Batavia, Goshen, Miami and Union Townships as well as the
Cities of Loveland and Milford and the Villages of Batavia
and Amelia.(614)
466-8134
District
Office (513)-248-2565
Website:
www.JoeUecker.com
Email:
Joe@JoeUecker.com |
