Ohio’s Tax Rate History
Ohio’s income tax rates have gradually been falling since 2005. Here’s a look at the rates before the 2005 reform, currently and as proposed.
|0 – $5,150||0.74%||0.59%||0.47%|
|$5,150 – $10,300||1.49%||1.17%||0.94%|
|$10,300 – $15,500||2.97%||2.35%||1.88%|
|$15,500 – $20,650||3.72%||2.94%||2.35%|
|$20,650 – $11,250||4.46%||3.52%||2.82%|
|$41,250 – $82,450||5.20%||4.11%||3.29%|
|$82,450 – $103,100||5.94%||4.70%||3.76%|
|$206,250 and up||7.50%||5.93%||4.74%|
Governor Kasich Callas For Major Tax Cuts To State Taxes
The Governor’s budget for the 2014 fiscal year, proposed slashing the state sales tax rate from 5.5 percent to 5 percent.
Kasich also said he plans to lower the state’s income tax rate to 4.75 percent, to be phased-in over 3 years. The state’s top income tax rate is currently 5.92 percent for those earning more than $204,200 per year.
Governor Kasich believes that his proposed tax cuts will keep Ohio’s economic momentum growing despite the economic problems coming from Washington.
Governor Kasich is also calling for a 50 percent tax cut for small businesses who’s annual income is bellow $750,000 a year.
The Governor’s proposed tax cuts total around $1.4 billion. The details of Governor Kasich’s tax cuts can be found on the States website: http://jobsbudget.ohio.gov/
Here are the economic and political realities that the United States and Ohio now face because of federal spending:
The nation is running a $16 trillion debt that is exploding with an increase exceeding one trillion dollars each year – with no budgetary plan for restraint in the future. The federal government now borrows more than four out of every ten dollars it spends. Increasing revenue by increasing tax rates or eliminating tax loopholes will have only a minimal effect on the growing federal deficit – if indeed it results in any increased revenue at all. Cutting spending is not only critical, it is inevitable and unavoidable. We must reduce government spending now, rather than waiting until the cuts are even more painful.
The liability for future spending for federal health care and pension liabilities- including Social Security, Medicare, and federal employees’ future retirement benefits – already exceeds $86.8 trillion (or 550% of America’s 2011 Gross Domestic Product (GDP)). According to Moody’s Investor Service, after the 18-month recession that ended in June 2009 U.S. states and localities face another $2 trillion in unfunded public-employee retirement costs. Many of these political state and local subdivisions are or soon will be facing insolvency.
According to Kaiser Family Foundation Data, government spending on health care entitlement programs accounts for over half of all health care spending; furthermore, spending increases in future years are concentrated within health care. Medicare’s cost is accelerating at a rate far in excess of the economy’s ability to fund the program. The program’s costs will consume an ever-growing share of the federal budget, from $560 billion in 2011, or 15% of federal spending, to $1.1 trillion in 2022, or 19%.
This spending cannot be curtailed unless there is fundamental reform of both Medicare and Medicaid. These reforms will likely include a defined contribution structure for Medicare, and grant funding to states like Ohio for Medicaid. However, any moves by federal policy makers to reduce the cost trends for these programs will have a profound effect on the overall health care funding structure.
A new poll conducted by Politico/GWU/Battleground finds that 76 percent of Americans favor “Cutting government spending across the board.” Here at Restoring Ohio we understand that there is no choice but to cut government spending or risk economic disaster. Americans, too, understand that the longer we wait to make these tough but unavoidable changes, the harder it will be.
Our Mission Statement
Restoring Ohio is made up of supporters from all across Ohio who are committed to a common good of the people of the state of Ohio, by supporting, educating, and advocating on positions and issues including free enterprise, limited government, economic growth, and traditional values. The Restoring Ohio Team empowers its supporters to make their voices heard in the State Capitol - by telephone, e-mail and personal visits - on every issue that affects a healthy Ohio. We provide updates on legislative actions and the positive impact on issues that we championed. Join us today by: