Think Tank Calls For Income Tax On Corporate Profits
Ohio is one of only six states in the country that doesn’t have an income tax on corporate profits. A liberal leaning think tank that studies public policy says that needs to change. Statehouse correspondent Jo Ingles reports.
Zach Schiller with Policy Matters Ohio says while the pandemic has hurt many small businesses, big corporations are seeing huge profits. The state’s corporate profits income tax was repealed in 2005 to make Ohio more competitive for business but Schiller says a new report shows it hasn’t worked out that way.
“We haven’t seen our incomes improve relative to the country. We haven’t seen our jobs improve relative to the country. If those kinds of tax cuts were effective, we would know it by now.”
One estimate shows a 8.5% tax could provide nearly $500 million a year in revenue. Many Republican lawmakers have said they want to cut taxes even more, though they’ve also expressed concern about the damage from the pandemic done to small businesses that were closed while big retailers stayed open.