Guest Column for
Representative Jay Hottinger
State Budget Makes Reforms to Benefit Ohio Taxpayers
When we began the process of passing House Bill 59,
the state budget, we wanted to be sure that we would have a piece of
legislation that would benefit all of
the hardworking citizens of Ohio. I
believe we achieved this, in one way, by reforming our tax system, which will
make a positive impact in the state.
A challenge we faced was moving the state more
towards a consumption-based tax structure and away from an income tax system.
The income tax system essentially punishes those who are having economic success. H.B. 59 allows for a net tax cut of over $2.7
billion over the next three years. Small
businesses will receive a tax cut of 50% while the
personal income tax will be cut by 10%.
This affects all Ohio income earners.
These cuts will also ensure that Ohio continues to be an inviting state
for new businesses to locate. It goes
without saying that growing the state economy through new business has a direct
impact on every citizen, regardless of location. Not only will Ohio see an influx in money being
pumped into the state economy, but with each new business comes new jobs.
In order to stay current, the state sales tax rate
will increase from 5.5% to 5.75%. This
modest increase will help accomplish the goal of giving people more control
over the taxes they pay. Instead of the
government deciding who will pay more, this consumption based tax is consumer
run, where the tax amount is based on the spending habits of the consumer.
In addition, medium- and lower- income Ohioans will
have the option of receiving a new Ohio Earned Income Tax Credit that is equal
to 5% of their federal EITC. This will
allow for an additional $1.4 million tax cut for these Ohioans.
Tax reform, although imperative to our economical
success, is only a part of the state budget.
Primary and secondary education received a boost in funding to continue
our focused support of education in this state.
State aid increased to nearly 70% of Ohio’s schools. Every district will at least receive the same
amount of funding as it did in FY’13.
Higher education is an important entity in Ohio and
the budget worked to encourage degree completion by making sure that these
schools were more affordable for students and their families. By capping tuition at 2% annually for every
state school, we are making headway in this area.
I believe this budget is another way Ohio is
improving the economy, creating jobs and educating students more
efficiently. In fact, this last May,
Ohio was the number one job creator in the United States. In addition, unemployment has declined from
9.0% to 7.0 %. Lastly, with a newly
reformed tax code, 98% of Ohioans will see a tax cut. Great things are ahead for the Buckeye State
and we are on the track to more success in our workplaces, schools and homes.
Rep. Hottinger may
be reached by calling (614) 466-1482, e-mailing Rep71@ohiohouse.gov or writing
to State Representative Jay Hottinger, 77 South High Street, Columbus, Ohio
43215.
No comments:
Post a Comment