Ohio is one of only six states in the country that do not have income tax on corporate profits. A liberal public policy think tank says that needs to change.
Zach Schiller, research director of Policy Matters Ohio, says while the pandemic has hurt many small businesses, big businesses are seeing huge gains. The state’s corporate income tax was waived in 2005 to make Ohio more competitive for business development and retention. However, according to Schiller, a new report showed that this didn’t work. (see the full report below)
“We have not seen that our incomes have improved compared to the country. We have not seen that our jobs have improved compared to the country. If such tax cuts were effective, we would know by now, “says Schiller.
One estimate shows that an 8.5% tax could generate nearly $ 500 million in revenue per year. Schiller says money could be used to help many Ohioans right now as the state battles the COVID-19 pandemic.
“I think the uncertain earnings situation we are in right now, the type of investments we urgently need to make, and the damage so many Ohioans are now experiencing suggest that this is the time to bring them back,” said Schiller.
Many Republican lawmakers have said they want to cut taxes even further, but have also voiced concerns about the damage the pandemic has caused to small businesses that have closed while large retailers have remained open.
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