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. Statehouse correspondent Jo Ingles reports.
Zach Schiller of Policy Matters Ohio says while the pandemic has hurt many small businesses, big businesses are seeing huge gains. The state’s corporation tax was lifted in 2005 to make Ohio more competitive, but Schiller says a new report shows that this didn’t work.
“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. ”
One estimate shows that an 8.5% tax could generate nearly $ 500 million in revenue per year. 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.