Tax Policy Study Committee finds benefits for flat tax

Written on Oct 05, 2017

OSCPA staff report

The Ohio 2020 Tax Policy Study Commission said Oct. 2 that testimony it heard over the past year showed that a flat tax for Ohio could be potentially beneficial, but transition to such a tax would be challenging because of the amount of tax credits and expenditures currently available.

The commission issued a 323-page report summarizing their findings over the past year, including reprinting the written testimony of the 43 individuals that testified at the 10 public hearings, including OSCPA members Adam Garn, CPA, JD, MT, and Matt Yuskewich, CPA.

The commission was created under House Bill 64. It passed the baton to another committee, the Tax Expenditure Review Committee created by HB 9, which received appointments in July and has not met yet.

The Ohio 2020 Tax Policy Study Commission noted witnesses who had testified that a flat tax would generally support economic growth, but said Ohio would have difficulty achieving a 3 or 3.5 percent tax rate with the current number of credits and deductions. OSCPA pointed out that reality in its 2016 Ohio Tax Reform Task Force report, which provided a comprehensive review of all major Ohio taxes.

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