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Senate committee hears debate over proposed phased-in flat income tax in Ohio

Senate Ways and Means Committee · January 29, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Sponsors told the Senate Ways and Means Committee Senate Bill 3 would phase in a flat income tax for tax years 2025–2026 to spur jobs and migration; opponents cited Legislative Service Commission and fiscal-note figures showing a $1.1–$1.6 billion annual revenue reduction and warned of shifts to local property taxes and school levies.

Senate sponsors introduced Senate Bill 3 on first hearing day before the Senate Ways and Means Committee, proposing a phased-in flat income tax to take effect in tax years 2025 and 2026. The sponsors said the change would simplify Ohio’s tax code, keep more earnings in residents’ pockets and help attract businesses and families from higher-tax states.

In sponsor testimony, a presenter speaking for the bill traced Ohio’s income tax history to 1970 and argued that successive tax increases and regulations drove businesses and people away. The sponsor credited recent policies — including business income deductions and regulatory reductions — with increasing startups and jobs, citing an…

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