Do we really need a state income tax anymore?
DEAR EDITOR:
Ohio has gradually become the land of tax and spend. In 1971, the year before the state income tax appeared on the ballot, the entire state functioned on tax collections amounting to $1.6 billion. In 2024, tax collections mushroomed to $26.3 billion. The state income tax alone generated $10.4 billion in 2024, about eight times total state revenue in 1971. It is illuminating to look at all the new Ohio taxes since the state income tax began in 1972.
The state lottery tax now generates $5.9 billion. When the lottery started, the funds were supposed to go to education, but alas, only $1.5 billion went to the schools last year; the rest was plowed into Ohio’s “general fund.” State sales tax rates have increased over the years, now generating $13.7 billion. The state liquor and beer tax pulls in $60 million and the relatively new “gambling tax” (levied on casinos and the like) yields another $1.1 billion. Oh yes, the tobacco tax! Ohio cigarette smokers have always been tagged with some sort of tax per pack, but in 1992 the state started taxing any and all tobacco products at 17%, netting $771 million last year. Other new taxes since 1971 include the Commercial Activity Tax started in 2005 and an “Income Tax on Trusts” started in 2002. We aren’t even talking about other collections, including BMV fees, BMV collections from selling our personal information to third parties and from turnpike tolls.
It is high time Ohio voters support a ballot initiative repealing the state income tax. The state has shown a historical willingness to come up with a tax on just about anything. Somehow, the State of Ohio managed to get things done on revenue of $1.6 billion in 1971. Factoring in inflation since then, the state would operate on $12.3 billion in today’s dollars. Eliminating the state income tax would leave Ohio operating on tax revenues of $15.9 billion, nearly 30% more compared to adjusted revenues in 1971.
Oh my, consider getting rid of the income tax? I can already hear the howls from Columbus. Our state legislators and executives need to figure out how to do more with less, like the rest of us. If and when the time comes, vote YES on abolishing the state income tax.
DAVE LONG
Poland
