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FREQUENTLY ASKED

What is the Ohio budget and why does it matter?

Is Ohio’s tax system fair?

Everyone pays something. The state has income and sales tax and local communities have property taxes. When all state and local taxes are taken together the wealthiest Ohioans pay about 6% of their income toward state and local taxes and the poorest Ohioans pay about 12%. This is because sales and property taxes are ‘regressive’ – they are a set rate not based on income. As we cut state income tax, the public sector relies on sales and property taxes more.

How do Ohio’s taxes compare to other states?

It is difficult to compare state taxes, because each state has a different structure. The average Ohioan pays a comparable amount of state and local taxes as individuals in other states. Most states are within 1% of each other for the total tax load for the average citizen. Instead of comparing our tax system, we should compare the outcomes – poverty, economic growth, poverty, hunger, high school graduation rates, etc.

How do taxes impact the economy?

At a state level, there is very little impact from state tax policy on the economy. Research has found little to no truth behind the claim that tax cuts will grow the economy or increase state revenue. People are not going to leave Ohio if tax rates on the wealthiest Ohioans go up. What is the impact of tax cuts on the economy? They mean less revenue to invest in our schools, bridges, and public health systems. That means fewer teachers, fire fighters, and construction workers.

What should we do to improve Ohio’s tax system?

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