Everyday Ohioans should not settle for sales tax holiday crumbs

This piece originally appeared on Cleveland.com on July 27, 2025

Ohio is about to begin its second annual expanded Sales Tax Holiday. This holiday has been panned by experts across the political spectrum. The conservative Tax Foundation and the progressive Institute on Taxation and Economic Policy describe sales tax holidays as ineffective drains on public resources. This rare area of common ground should have Ohioans asking whether a tax holiday makes sense. The answer is a resounding no.

Consider the primary beneficiaries of this holiday: those with the financial flexibility to schedule their purchases to take full advantage. In short, among the households that would benefit most are those that disproportionately benefitted from two decades of income tax cuts. The same rich and well-connected who will reap the lion’s share of the state budget’s move to a flat income tax.

While families living paycheck to paycheck may get a break from highly regressive sales tax, they can’t fully participate, and the few dollars they save won’t provide meaningful economic relief. The measly benefit working Ohioans receive gives us little to celebrate, yet we are told to be grateful, that every little bit helps. But everyday Ohioans should not settle for crumbs while the wealthy feast.

If our elected officials expect gratitude, they should deliver a tax system where we all pay our fair share to adequately fund our public goods and services.

Instead of a poorly targeted sales holiday that offers “relief” for two weeks of purchases, Ohio should enact a sales tax credit to benefit lower- and moderate-income Ohioans. This credit could be targeted to those with lower incomes, helping mitigate the regressive sales tax that consumes a higher share of income the less you have. This method gets relief to those who need it without breaking the bank for the state. It’s fiscally responsible policy, which often means it is doomed by our economically reckless state legislature.

Policy Matters Ohio has long advocated pro-worker, pro-family tax policies that balance the interests of taxpayers and the services they rely on. A fully refundable child tax credit for all children under the age of 17 would put money directly into the pockets of working parents. The state legislature decided to spend that money on an income tax cut that primarily benefited six-figure earners.

We have advocated for a property tax circuit breaker that would offset high property taxes for homeowners and renters of all ages. But Columbus politicians would rather blame school districts for the consequences of irresponsible tax and spending cuts.

A refundable earned income tax credit would put Ohio in line with a majority of states with their own version, giving workers a credit to make the tax code more equitable. Instead, our elected officials gave over half a billion dollars to one of the wealthiest families in the state and expect us to be grateful to maybe work at their new pet project.

Ohioans, this Sales Tax Holiday season, let’s reflect on what our tax code should be all year round: equitable — so everyone pays their fair share — and adequate — so we have enough to fund public services that benefit everyone. On both measures, the Sales Tax Holiday is a step in the wrong direction.