Fox 19: Ohio lawmakers present plan to eliminate state income tax

UC economist says states without income tax tend to increase taxes elsewhere

Lawmakers’ plans to eliminate Ohio’s income tax by 2030 might not deliver all the benefits that are touted, a University of Cincinnati economics professor told Fox 19.

LCoB faculty and staff

David Brasington, PhD, James C. and Caroline Kautz Chair in Political Economy and professor of economics

Republican representatives and senators announced plans for legislation that if passed would phase out Ohio’s income tax by the end of the decade. They said the elimination of the tax would encourage businesses and individuals to move to the state.

Currently nine states don’t have an income tax.

“If you look at the states that don’t have an income tax, they tend to have higher property taxes and sales taxes to try to make up for it,” said David Brasington, PhD, the James C. and Caroline Kautz Chair in Political Economy and economics professor in UC’s Carl H. Lindner College of Business.

Some of the fastest growing states in the nation don’t have an income tax, but Brasington said it’s unclear if their growth is because of their lack of income taxes or because of their warmer climates.

“But we don’t have the same mild weather that Texas, Florida and Tennessee do,” he said. “So, it’s unclear if we’d ever be a beneficiary of people fleeing high tax states.”

See more from Fox 19.

Featured image at top: Tax papers. Photo/Kelly Sikkema via Unsplash

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