I just received a press release from the Ohio Department of Taxation which stated that the U.S. Census has found that Ohio is not, in fact, a high state tax state at all.
According to the U.S. Census, Ohio ranks 35th in paying state taxes per capita.? Only “15 other states collect less in taxes per person than Ohio.”? The Census also found that Ohio ranks 33rd in the nation in average percentage of income to State income taxes; only 17 other States collect less of a percentage in income than Ohio.
From the press release:
These new figures bear out what we?ve been saying: Ohio is not a high tax state, certainly not where state taxes are concerned,? Ohio Tax Commissioner Richard A. Levin said. ?That?s what these new census figures show.?
In 2005, the state tax burden in Ohio was closer to the middle of the pack: 27th highest per capita and 28th highest when measured as a percentage of personal income, according to the FTA.
Ohio?s improved national ranking seems to reflect the impact of a package of tax reductions and reforms enacted in 2005 and gradually phased in during the past five years, Levin said.
The tax cuts include a 17 percent reduction in income tax rates and the elimination of two major business taxes on corporation profits and business property. The overall net savings to taxpayers: About $2.1 billion this fiscal year alone.
?By phasing out complex and antiquated business taxes, state leaders have eliminated barriers to investment and given businesses a new reason to consider creating jobs in Ohio,? Levin said. ?And these changes have certainly lowered the tax burden. This package of tax reductions was the largest in Ohio in at least 70 years.?
And it wouldn’t be possible without Governor Strickland’s support to change Ohio’s business taxing climate.
The Federation of Tax Administration has the ranking available on their website.? This is based on the most recent fiscal year.
Interesting observation, guess what States took the most per capita and per income?? Guess what the # 1 and # 2 States with the highest per capita and per income state taxes had in common?? They’re both no state personal income tax States! (Alaska and Wyoming, respectively.)
Again, all that repealing an income tax will do is force higher “fees” and the creation of newer and higher State taxes.
John Kasich’s plan would result in higher taxes for the middle and working class.