Ohio’s individual income tax rates will fall by more than 4% across the board next year, meaning additional savings for Ohio taxpayers.
But there is a larger historical significance to next year’s rate reductions. They also mark the finish line in one of the most ambitious packages of state tax cuts ever undertaken in Ohio, a multiyear plan that has reduced income tax rates four other times and phased out Ohio’s two largest business taxes.
With next year’s rate change, state income tax rates will be a full 21% lower across the board in 2011 than they were in 2004, the year before the Ohio General Assembly launched the tax reform plan as part of House Bill 66.
The plan, launched during the Taft administration, was embraced by Governor Ted Strickland and has reduced taxes throughout his term as governor. The reforms also included a gradual phase out of local property taxes on business machinery and equipment and a phase out of the state’s corporation franchise tax on profits.… Continue readingRead More »