Buckeye Institute Leads Coalition Urging Ohio House to Pass Comprehensive Income Tax Reform » Research » Buckeye Institute

Buckeye Institute Leads Coalition Urging Ohio House to Pass Comprehensive Income Tax Reform

April 18, 2023

Columbus, Ohio – As the Ohio House of Representatives prepares to vote on House Bill 33, Ohio’s biennial budget, a coalition of leading pro-small government organizations sent a letter (see text below or download the PDF) to House members, urging them to pass “legislation that lowers the state income tax to a single flat rate and reduces net income, returning hard-earned taxpayer dollars to families and small businesses.”

The letter was signed by representatives of The Buckeye Institute, Americans for Prosperity, Americans for Tax Reform, Ohioans for Tax Reform, Center for Freedom and Prosperity, Medina County Friends and Neighbors, Independent Women’s Network, National Taxpayers Union, International United Pentecostal Church of Ohio District, Ohio United 4 America, Taxpayer Protection Allianceand Center for a Free Economy.

April 18, 2023

To: Members of the Ohio House of Representatives


The undersigned organizations are writing in support of the 135th Ohio General Assembly passing legislation that reduces the state’s income tax to a single flat rate and reduces net revenues, returning hard-earned taxpayer dollars to families and small businesses.

The state took in nearly $6 billion more than expected by the end of last fiscal year. When the government collects more money than it needs, the top priority should be returning that money to the taxpayers who earned it.

We applaud the House for prioritizing tax reform that achieves these principles with House Bill 1, and we support budget proposals that achieve these goals: Achieve a low flat income tax rate while avoiding increasing the burden on any group; using the surplus to achieve a permanent reduction in income tax; and splitting state and local revenues.

If these amendments are added to the House budget, the plan would reduce Ohio’s state income tax to a flat flat rate of 2.75 percent. This would be the second lowest flat tax rate in the nation and a lower tax rate than the highest graduated tax rate of any state.

That would make Ohio a top 10 state in income tax competitivenessafter only the states that do not impose a gross income tax (according to current legislation).

These changes will return more than $17 billion to taxpayers – attracting new workers and businesses, making it easier for existing Ohio businesses to stay and grow, while allowing Ohio workers to keep more of their paychecks.

Through the budget process, we urge lawmakers to support these tax reforms and pass them by June 30: A flat income tax of 2.75% that avoids increasing the burden on any group; distinguishing between state and local revenues; and using the budget surplus to achieve this permanent reduction in income tax.

Lawmakers must also limit spending to ensure a sustainable budget for Ohio taxpayers. Eventually, the cost ceiling that limits it increases to the rate of inflation plus the rate of population growth is a proven mechanism to ensure that budget growth does not exceed the needs or means of Ohioans. Eliminate wasteful spending together with limiting the growth of future costs are key to the country’s prosperity.

We welcome your focus on leading national tax cuts as a top priority this session. The Legislature during Governor DeWine’s tenure has been very successful in reducing the tax and regulatory burden in Ohio. These efforts are gaining national attention and spurring neighboring states to continue their work to limit their tax burdens.

We urge you to continue reducing and equalizing Ohio’s income tax in this session’s biennial budget by passing tax reform along the lines described in this letter.

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