COLUMBUS – Americans for Prosperity-Ohio is commenting today on the continued need to reform the state’s business tax climate to encourage job creation and economic growth. The comments come as a result of the recently released State Tax Cut Roundup of the 2013 Legislative Session by the American Legislative Exchange Council (ALEC).
“The Governor and legislature deserve credit for what ALEC recognizes as the ‘largest year-to-year tax cut of the 2013 legislative session with a cut of $2.7 billion over three years.’ In particular, personal income tax payers will reap the benefit of a 10 percent across-the-board income tax rate cut which will phase in over the next three years while small businesses filing as pass-through entities will be able to deduct 50 percent of the first $250,000 in taxable income each year,” said Eli Miller, Americans for Prosperity Ohio State Director. “These changes put Ohio on the path toward a simpler tax climate that will attract more businesses to our state.”
According to the ALEC report, 18 states made pro-growth tax changes this session. The report also found that in general, states with lower tax and regulatory burdens, as well as those that encourage entrepreneurship, consistently perform better economically than their high-tax counterparts. In order to make the list, states had to meet the following criteria: Substantially cut taxes at the state level; Vote(s) occurred in the 2013 legislative session; Results in a net decrease in taxes over the legislative session; and Applies broadly and neutrally, or otherwise conforms the state closer to ALEC’s Principles of Sound Tax Policy.
“On the other hand, Ohio still ranks 26th in the ALEC Rich States, Poor States 2013 Economic Outlook Ranking and businesses with more than $1 million in taxable gross receipts will bear more of the state’s commercial activities tax burden,” continued Miller. “These numbers show that while we took positive steps toward economic growth in 2013, more work remains to be done in 2014. We look forward to working with the Governor and members of the legislature to ensure that Ohio moves up from the middle of the pack and becomes a leader in economic development not only in our region, but across the nation.”