Tuesday, October 03, 2006

Blackwell to Save Millions of Ohioans Tax Dollars

This just in from the Blackwell campaign:
In his first 100 days as governor, gubernatorial candidate Ken Blackwell today pledged to reform Ohio’s income tax system and provide $1.2 billion in tax cuts for millions of Ohio families and small business owners. Blackwell proposed moving to a single rate state income system of 3.25 percent over several years and eliminating taxes or freezing increases on Ohioans paying lower rates.

“With the third highest tax burden in the nation, Ohioans pay too much in taxes with little to show,” Blackwell said. “Our high taxes chase away good paying jobs and opportunities. As governor, I will cut taxes and create an environment that will bring jobs and prosperity back to our state.”

The proposed reform provides immediate total tax freedom to filers earning less than $20,000 a year, removing 900,000 working poor from the tax rolls. In addition, the plan would cut taxes for over 300,000 small business owners currently paying primary business taxes through their personal income taxes.

Blackwell’s plan calls for the removal of four of Ohio’s nine tax brackets as a step toward a single rate tax income system. Ohioans currently paying less than 3.25 percent would receive an income tax rate freeze and keep current deductions.

Also, Blackwell called for accelerating the General Assembly’s 21 percent income tax cut from five years to three years. The move will speed up tax cuts for 5.3 million Ohioans.

The reform will result in a $1.2 billion tax cut for Ohioans. The lost revenue will be offset by the Blackwell-inspired 3.5 percent cap on state government spending increases passed into law this summer, Medicaid savings based on the recommendations of the Ohio Commission to Reform Medicaid and economic growth.

Illinois, Indiana, Michigan and Pennsylvania all have single rate state income tax systems. Each state has varying levels of deductions based on personal income and other factors.

No comments: