House budget’s smart tax break cuts shouldn’t go into misguided across-the-board rate cuts

The Ohio House today took a major positive step in limiting the costly, unproductive business income tax break. But it then missed a golden opportunity to make key investments the state needs by spending the additional revenue – and more – on an ill-advised, across-the-board income-tax cut that will do little for most of the poorest Ohioans.

“The House budget includes some much-needed spending boosts for education, children’s services and other priorities,” said Wendy Patton, senior project director at Policy Matters Ohio. “But the additional revenue from reducing tax loopholes should also be directed to the burning needs of our communities. A refundable earned income tax credit would provide more targeted income-tax cuts than the package in the House budget.”