Republican leaders of the Ohio Senate have proposed a $75-billion-dollar, two-year budget that includes a 5% across-the-board income tax cut. The tax cut is a boost from 2% cut in the House budget.
Senate President Matt Huffman (R-Lima) said the issue he’s hearing about most these days is employers who cannot find enough employees. So, he says the 5% cut, which totals $874 million, is an “incentive” for working Ohioans.
“If we want to talk about stimulus plans and what works and what doesn’t, an income tax cut will always be the best stimulus," Huffman said.
Huffman said the tax cut is not targeted to specific incentives but will be across-the-board for all Ohioans. The Senate budget includes $1.3 billion in tax cuts for individuals and businesses, and Huffman said that’s paid for by reductions in spending in state agencies and services.
Policy Matters Ohio said the Senate's proposed tax cut will do little to deal with the labor shortage right now. It said a food service worker who works 40 hours a week earns an annual median income of $20,363. The organization notes Ohioans don't start paying income tax until they reach $22,150 per year.
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