Guest Column from State Representative Jim Buchy
Of all the state operating budgets I have worked on in Columbus, this year’s was the most jam-packed. So, therefore, there is plenty to talk about, especially now that the governor has signed it into law.
It was encouraging to see our state at the top of the list for job creation in the month of May, creating more than 32,000 jobs. This budget will give another boost to small businesses and families so that our economy can continue to grow. One of the most transformational parts of this year’s budget was on the issue of tax reform.
Over the next three years, Ohioans will see a net tax reduction of $2.7 billion. This will keep more money in the hands of Ohio families where it belongs and will help to spur further job creation. In that three-year timeframe, individuals will receive up to a 10-percent reduction in income taxes, and small businesses will receive an immediate 50-percent income tax cut on their first $250,000.
The tax cut was made possible because of increased revenues coming in, mostly based on the creation of 170,000 private sector jobs since January 2011. Through compromise between the House and Senate, we were able to settle on a plan that provided tax relief for both businesses and income-earners in the state.
I have long believed that the income tax system tends to punish success and achievement. The harder a person works—taking on a second job to help pay for their kid’s college tuition, for example—the more that person has to give back to the government.
This budget plan makes a modest transition away from income-based taxes and more towards consumption-based taxes. Combined with the massive income tax cut is a modest increase in the state sales tax by a quarter of one percent. To put that number in perspective, people will pay an extra 25 cents of sales tax on every $100 of goods purchased. In that way, people have more choice in what they pay in taxes because it is based on what we spend, rather than what we earn.
As I get a chance over the coming months to meet with constituents, I look forward to sharing more details about the budget and the many great things underway for Ohio’s economy. As always, I appreciate your feedback. One way to efficiently share your thoughts is to fill out my online survey at tinyurl.com/buchyjuly.
It was encouraging to see our state at the top of the list for job creation in the month of May, creating more than 32,000 jobs. This budget will give another boost to small businesses and families so that our economy can continue to grow. One of the most transformational parts of this year’s budget was on the issue of tax reform.
Over the next three years, Ohioans will see a net tax reduction of $2.7 billion. This will keep more money in the hands of Ohio families where it belongs and will help to spur further job creation. In that three-year timeframe, individuals will receive up to a 10-percent reduction in income taxes, and small businesses will receive an immediate 50-percent income tax cut on their first $250,000.
The tax cut was made possible because of increased revenues coming in, mostly based on the creation of 170,000 private sector jobs since January 2011. Through compromise between the House and Senate, we were able to settle on a plan that provided tax relief for both businesses and income-earners in the state.
I have long believed that the income tax system tends to punish success and achievement. The harder a person works—taking on a second job to help pay for their kid’s college tuition, for example—the more that person has to give back to the government.
This budget plan makes a modest transition away from income-based taxes and more towards consumption-based taxes. Combined with the massive income tax cut is a modest increase in the state sales tax by a quarter of one percent. To put that number in perspective, people will pay an extra 25 cents of sales tax on every $100 of goods purchased. In that way, people have more choice in what they pay in taxes because it is based on what we spend, rather than what we earn.
As I get a chance over the coming months to meet with constituents, I look forward to sharing more details about the budget and the many great things underway for Ohio’s economy. As always, I appreciate your feedback. One way to efficiently share your thoughts is to fill out my online survey at tinyurl.com/buchyjuly.