Some Lawmakers Question Value Of Income Tax Cuts
During the past decade, Ohio’s income tax has been cut several times. And it looks like it might be cut again as the Republican led legislature considers the state budget. But some lawmakers are questioning the value of those cuts.
Republican Finance Committee Chair Ryan Smith says it is important to cut income taxes, especially for small businesses. They would get another tax break under the house’s proposed budget.
“We think this will allow them to keep more of their hard earned money and invest it back into their businesses so they can create more jobs for Ohio’s future,” Smith said.
But some House Democrats, including Denise Driehaus, say not all small businesses should get the proposed tax cuts.
“If you are going to invest in your business, you are going to buy a piece of equipment or hire somebody, then apply for the incentive because that incentive should go to you instead of somebody who is simply going to take those dollars and not use them to reinvest and then no economic activity takes place,” she said.
Driehaus says lawmakers have cut income taxes for individuals and businesses for ten years and it hasn’t had a substantial positive effect on Ohio’s economy.