State Representative Jim Buchy
Still a Ways to Go, But Ohio’s Economy Headed in Right Direction

It has been a little more than a month ago since the tax changes in the budget took effect, so I wanted to take an opportunity to remind the residents of the 84th House District of some of the specific changes that were included.

As a whole, income-earners in Ohio will see a net $2.7 billion reduction in their income taxes, which will keep more money in the hands of Ohio families where it belongs and will help to spur further job creation. In that three-year timeframe, individuals will receive up to a 10-percent reduction in income taxes, and small businesses will receive an immediate 50-percent income tax cut on their first $250,000.

Critics of the budget have directed most of their focus to the slight increase in sales tax, and because of that I think the issue has been misrepresented. The sales tax adjustment will add just 25 cents on every $100 spent. Second, when combined with the income tax cuts, Ohioans will still be paying $2.7 billion less in taxes, as I stated earlier. Third, important things like groceries, medicine and education are not subject to the sales tax. In fact, the Ohio Department of Taxation said that only 35 percent of an average Ohio family’s budget is subject to sales taxes.

Making the tax climate friendlier for families, individuals and businesses has been a focus of the Ohio House since Republicans took back the majority in 2011. Two years ago, Ohio joined the list of states to eliminate the estate tax (or “death tax”), which had placed an especially unfair burden on family farms and small business operations. This hurt investments in these entities and in many cases they had a hard time staying in business.

It is understandably tempting to look at our economy with a magnifying glass and overemphasize every success or failure. We are all guilty of that at some time or another. Some months produce better jobs numbers than others, and the unemployment rate ticks up or down month-to-month. While these things should be taken seriously, it is only when looking at the big picture over time that we can truly tell what direction our economy is headed.

In the past year, two national publications—CEO Magazine and Business Facilities Magazine—have named Ohio as the state with the most improved climate for business since last year. Ohio is gaining jobs, not losing them. The state’s unemployment rate has fallen by more than 1.5 percent since 2010. Average wages are on the rise.

As always, I appreciate your feedback. One way to efficiently share your thoughts is to fill out my online survey at tinurl.com/buchyoct