More Than $2.7 Billion in Tax Relief
When Governor Kasich proposed tax reform as part of the Ohio’s biennial budget in February, Ohioans were cautiously optimistic. The Governor’s proposals were bold and with the help of the state legislature tax reform has been achieved.
The tax reform we are discussing today is much different than originally proposed by Governor Kasich, but the same principle is intact. Ohioans need a break on their income tax. In Ohio, we are taxed on the things we buy, the things we own, and the income we bring home. Our tax system is not competitive; many economists agree reducing the personal income tax will aide in Ohio’s economic recovery. Please let Representative Buchy know what you think by completing the taxpayer’s survey.
The final plan is the result of compromise between state leaders. The House of Representatives passed the budget with an across-the-board personal income tax break, while the Senate favored a tax break that spurs economic growth by focusing relief on small business owners. After many hours of deliberations each side joined together for tax reform that increases transparency and adjusts Ohio’s total taxing system in a way that favors economic growth. The best part of the plan is that Ohioans will experience a $2.7 Billion tax relief on their next tax bill. You can share the taxpayer’s survey by directing friends and family to tinyurl.com/taxpayerssurvey
Below are detailed bullet points on each part of this package:
Major Income Tax Reform
Closing Loopholes
Sales Tax Reform
Property Tax Reform
Commercial Activity Tax (CAT)
Earned Income Tax Credit (EITC)
Thank you for remaining in touch with me. Your efforts to inform me of your concerns are a major part of the results we are viewing today. Please take this opportunity to let me know what you think of this new tax reform package. Please complete a new survey! Tell a friend tinyurl.com/taxpayerssurvey.
When Governor Kasich proposed tax reform as part of the Ohio’s biennial budget in February, Ohioans were cautiously optimistic. The Governor’s proposals were bold and with the help of the state legislature tax reform has been achieved.
The tax reform we are discussing today is much different than originally proposed by Governor Kasich, but the same principle is intact. Ohioans need a break on their income tax. In Ohio, we are taxed on the things we buy, the things we own, and the income we bring home. Our tax system is not competitive; many economists agree reducing the personal income tax will aide in Ohio’s economic recovery. Please let Representative Buchy know what you think by completing the taxpayer’s survey.
The final plan is the result of compromise between state leaders. The House of Representatives passed the budget with an across-the-board personal income tax break, while the Senate favored a tax break that spurs economic growth by focusing relief on small business owners. After many hours of deliberations each side joined together for tax reform that increases transparency and adjusts Ohio’s total taxing system in a way that favors economic growth. The best part of the plan is that Ohioans will experience a $2.7 Billion tax relief on their next tax bill. You can share the taxpayer’s survey by directing friends and family to tinyurl.com/taxpayerssurvey
Below are detailed bullet points on each part of this package:
Major Income Tax Reform
- $2.7 Billion in overall tax relief to small businesses and taxpayers over the next three years
- 50% Small Business Tax Cut on the first $250,000 in net business income
- 10% Income Tax Cut over the next three years
Closing Loopholes
- Eliminates the gambling loss deduction
- Equalizes the cigarette tax for cigarillos and cigarettes
- Equalizes magazine taxes to magazines purchased via subscription
Sales Tax Reform
- Adjusts sales tax rate from 5.5% to 5.75%
- Modernizes overall tax structure, ensuring that sales tax is collected on qualifying purchases
- Equalizes the sale of digital goods with already-taxed hard copy counterparts
Property Tax Reform
- Correcting Homestead Tax Exemptions
- Was designed to help low income seniors stay in their homes
- Policy was abandoned under by the previous administration and included higher-income seniors, thus significantly increasing state government costs, which were passed down to taxpayers
- Under this proposal, this relief will only go to lower-income seniors means-tested to $30,000
- Those currently eligible will retain eligibility
- Property Tax Simplification and Transparency
- Eliminates a provision by which your state tax dollars are used to pay a portion of property taxes
- Reverts to a more transparent system where home owners pay all of their property taxes, but enjoy lower income tax rates.
- Existing levies are unchanged. Schools and local governments will not see any fewer dollars
Commercial Activity Tax (CAT)
- New minimum tax payments for businesses
- $800 minimum for businesses with $1 million to $2 million in gross receipts
- $2,100 minimum for those with $2 million to $4 million in gross receipts
- $2,600 minimum for those with $4 million or more in gross receipts
Earned Income Tax Credit (EITC)
- Limits the personal exemption credit to those earning less than $30,000
- Retains $20 personal exemption credit for those earning less than $10,000
Thank you for remaining in touch with me. Your efforts to inform me of your concerns are a major part of the results we are viewing today. Please take this opportunity to let me know what you think of this new tax reform package. Please complete a new survey! Tell a friend tinyurl.com/taxpayerssurvey.