In a survey released this morning by Scioto Analysis, 18 of 22 economists agreed the flat state income tax of 2.75% proposed by lawmakers would deepen income inequality across the state.
Curtis Reynolds of Kent State wrote “cutting taxes will certainly not improve inequality, since much of the benefits will be felt by higher income individuals. On top of that, required cuts to services to balance the budget may disproportionately hurt lower income households.”
David Brasington of the University of Cincinnati who was uncertain about the inequality impacts of the flat tax commented “it depends on local government response, how they change income and property taxes in response.”
Additionally, the majority of economists (12 of 22) think that a flat income tax would not help grow the state economy. Eight more were uncertain about the impacts this would have on the overall economy, and only two believed this would help grow the economy.
“Public services and goods are an important part of the necessary infrastructure to grow an economy. Cutting state income taxes will reduce the public infrastructure. Our current tax rate is very competitive with other states and doesn't need to be reduced,” says Rachel Wilson of Wittenberg University.
More quotes and full survey responses can be found here.
The Ohio Economic Experts Panel is a panel of over 40 Ohio Economists from over 30 Ohio higher educational institutions conducted by Scioto Analysis. The goal of the Ohio Economic Experts Panel is to promote better policy outcomes by providing policymakers, policy influencers, and the public with the informed opinions of Ohio’s leading economists.