Senate proposes 5% income tax cut in state budget

Local News

COLUMBUS, OH (WCMH) – On Tuesday, the Ohio Senate released their version of the state’s budget plan. The proposal includes changes to Ohio’s school funding and a 5% income tax cut for Ohioans across the board.

Senate President Matt Huffman and Finance Chairman Sen. Matt Dolan laid out their plan for Ohio as the state attempts to make a comeback after the pandemic. The plan includes a 5% cut to income tax, Huffman says it will act as a stimulus to those who are working.

“A tax that says the harder you work, the more you pay is a bad tax,” said Senate President Huffman, (R) Lima. “You could in some ways call it a reward for people who are working but it’s more than that it’s an incentive.”

Senate President Huffman says it will be an incentive to those who haven’t rejoined the workforce and instead have been collecting unemployment. Policy Matters Ohio’s Research Director Zach Schiller says this will only help wealthy Ohioans.

“We’ve cut our income tax by over a third since 2005. Has it produced a vibrant Ohio? I think the answer is no. We’re losing another congressional seat, our population is declining compared to the rest of the country,” said Schiller.

The tax cut has an estimated cost of more than 800 million dollars. To make up for that, the Senate’s proposal has removed the millions of dollars set aside in the House’s plan to expand broadband. Huffman says a plan is needed before that happens.

“I don’t want to simply start spending hundreds of millions of dollars and hoping well that’s pretty good isn’t it,” said Senate President Huffman.

The Senate’s plan also makes changes to Ohio’s school funding formula, assigning a base number of funds per student. The plan would still be funded by property taxes.

“By not investing in students’ success, we’re deterring businesses that rely on an educated workforce from moving to Ohio. We’ll continue to fight for the Fair School Funding Plan, as passed by the House, because it’s what our children deserve,” said Minority Leader Sen. Kenny Yuko, (D) Richmond Heights.

“Probably the most important, it is a sustainable plan. Which means we can pay for this plan and the school districts can rely on it,” said Senator Matt Dolan, (R) Finance Chairman.

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