OHIO, USA —
Republican legislators have proposed two bills aiming to phase out Ohio's state income tax by 2030.
Both bills aim to gradually phase out individual income taxes to zero, each with different reduction rates.
One bill was proposed in the House by Reps. Adam Mathews (Lebanon) and Brian Lampton (Beavercreek) and the other was proposed in the Senate by Sens. George Lang (West Chester) and Steve Huffman (Tipp City).
Each plan would also reduce the tax rate for Ohioans making over $100,000 a year more quickly than those making between $26,001 and $100,000.
State income tax funds education and public projects like roads and hospitals.
"Almost one-third of the state revenue comes from income taxes, a third roughly from property taxes and a third from sales tax," said Christian Imboden, an assistant teaching professor of economics at Bowling Green State University said. "If you eliminate that income tax third, you have to make up for it otherwise or cut services."
Some of the places where increases could happen are at a local level or through increased property taxes, according to David Brasington, a professor of economics at the University of Cincinnati. He said some local governments might miss some of the state services if they were to be cut and increase property taxes or local taxes in response.
"Other communities might say good riddance, we would rather have the lower taxes," Brasington said.
Some of the places where cuts would be seen could be education, with reductions in hiring and projects.
Imboden said potential cuts to Medicaid, which is funded through federal and state funds, are also a concern.
"We could see some potentially painful cuts to some of our most vulnerable population in Ohio," he said.
Lawmakers are also hosting town halls to allow citizens to give feedback about the two bills. The bills are still waiting to be numbered and move forward in legislation.