Crain’s Cleveland Business first published this piece.

Tax Day is upon us once again. But after a decade of solid tax reforms, including a popular flat-rate income tax for all Ohio taxpayers, April 15 will sting less this year than it did last year. And when the flat-tax rate drops to 2.75% next year—saving $1 billion over two years—it will sting even less.

A sound tax policy of low rates that do not penalize savers or earners is already yielding positive results. Just a few years ago, Ohio had several convoluted tax brackets with a top rate well over five percent that put the state at a competitive economic disadvantage. Businesses and residents routinely flocked to warmer climates and lower tax burdens, shrinking the job market and tax base.

But as Ohio cut taxes, jobs and residents returned. The unemployment rate has fallen as tax rates have decreased, meaning Ohioans are able to find work when they look for it. And the state now ranks 10th in interstate emigration, far outpacing our regional rivals.

Taxes must be levied, of course, to pay for basic government services, including schools, snowplows and police forces. But taxes also discourage taxed activity, and because income taxes discourage work, savings, and investment, they are widely regarded as the second-worst kind of tax for economic growth. The higher the income tax rates, the slower and lower the growth.

Skeptics and critics were wrong when they warned that a low flat tax would drain the state’s public coffers. On the contrary, Ohio’s economy and its tax receipts have exceeded expectations. The state’s Rainy Day Fund remains at or near record levels even as tax rates fall and the economy trades its “rust belt” image for a shiny new hi-tech and advanced manufacturing era.

Lower, flatter tax rates provide businesses and families with more certainty and more cash—both essential for sustained growth. Flat taxes remove guesswork and reduce administrative burdens. By leaving money with private-sector producers, low taxes create economic flexibility for businesses to expand and encourage households to work, save, and invest.

And now that almost half the states in the country have a flat or zero income tax, Ohio’s low flat tax will keep the state regionally competitive. At 2.75% next year, Ohio’s rate will be lower than all of its neighbors, making it even more attractive for employers and their employees—a basic economic truth routinely proven by Americans moving from high-tax states to low-tax states for decades.

Ohio’s flat tax holds the key to its economic revival. Advanced manufacturing and tech companies continue to relocate and expand here. College graduates have found quality jobs in Ohio’s blossoming finance and technology sectors. And traditional manufacturing has been reborn in part due to Ohio’s recent tax and energy reforms.

Policymakers can still eliminate stubborn tax loopholes and special credits, so work remains to be done. Tax credits are no longer needed and only make the tax code more complicated than necessary. But thanks to some commonsense improvements, the state’s income taxes are less painful today than they were yesterday, and Ohio’s tax future looks increasingly bright.

Rea S. Hederman Jr. is vice president of policy at The Buckeye Institute.