by Greg R. Lawson
Buckeye Institute
February 06, 2014
Ohio’s current state and local tax system is an albatross around the neck of Ohio’s long-term economic vibrancy. The Tax Foundation’s latest ranking of Ohio’s business tax climate was an underwhelming 39th. Ohio’s top income tax rate is higher than three of its immediate neighbors, and its sales tax rate, when combined with local sales taxes, is higher than any of its contiguous neighbors. Things only get worse when factoring in a complicated and punitive system of municipal taxation. The first phase of reform for Ohio’s municipal income tax system should include at a minimum elimination of the double taxation of pass-through entities, a uniform and adequate length net operating loss carry forward, uniform rules, forms, and instructions for taxpayers across jurisdictions, a simple “bright-line” test for determining residency, and simplification of the rules for casual entrant workers.



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