Historic Tax Cuts Lead to More Tax Revenue for Ohio
September 9, 2022
Kristina D. Roegner News
COLUMBUS—State Senator Kristina Roegner (R-Hudson) said today she is thrilled to see state tax revenue has significantly increased following historic tax cuts for Ohio's working men and women, and small businesses. The state collected $54.2 million from income taxes in August, which was 6.8 percent more than was projected. Overall, Ohio collected 3.4 percent more tax revenue last month than was expected. Total tax collections for this fiscal year are $4.5 billion, almost 2 percent more than anticipated.
"This is why we have worked so long and hard to reduce the tax rates for all Ohio taxpayers, and why I voted to reduce the overall number of personal income tax brackets," said Roegner. "This historic tax reform is a win-win, allowing people to keep more of their hard-earned money in their pockets while producing more revenue for our state."
The state budget passed by the General Assembly last year included the largest personal income tax cut in any of Ohio's two-year budgets, ever. The budget bill also increased the threshold for which a person pays zero state income tax from $22,150 to $25,000, giving an additional 125,000 Ohioans a 100 percent tax cut.
The budget for Fiscal Year 2022-2023 lowered the highest marginal tax rate from 4.79 percent to 3.99 percent by reducing Ohio’s tax brackets from five to four, and implemented a 3 percent across the board income tax cut for the remaining four brackets. Ohio had nine tax brackets just seven years ago, before the Republican-led legislature began significantly lightening the tax burden for Ohioans.
"This is why we have worked so long and hard to reduce the tax rates for all Ohio taxpayers, and why I voted to reduce the overall number of personal income tax brackets," said Roegner. "This historic tax reform is a win-win, allowing people to keep more of their hard-earned money in their pockets while producing more revenue for our state."
The state budget passed by the General Assembly last year included the largest personal income tax cut in any of Ohio's two-year budgets, ever. The budget bill also increased the threshold for which a person pays zero state income tax from $22,150 to $25,000, giving an additional 125,000 Ohioans a 100 percent tax cut.
The budget for Fiscal Year 2022-2023 lowered the highest marginal tax rate from 4.79 percent to 3.99 percent by reducing Ohio’s tax brackets from five to four, and implemented a 3 percent across the board income tax cut for the remaining four brackets. Ohio had nine tax brackets just seven years ago, before the Republican-led legislature began significantly lightening the tax burden for Ohioans.