This opinion piece was first published in Crain’s Cleveland Business.

States around the country have started a flat-tax revolution. Nine states have abandoned progressive, graduated income taxes that punish wage earners for being successful. Five more states are currently poised to join the revolution. Ohio should, too.

And with a $6 billion surplus sitting in state coffers at the end of the last fiscal year, now is the time.

The General Assembly has been mulling a move to a single, 2.75% flat-tax rate. If adopted, Ohio would have the second-lowest flat tax in the country. The Ohio Senate can make that low-tax dream come true when it passes the state's biennial budget.

It is no surprise that states interested in growing their economies and improving the lives of their residents are fleeing complicated and cumbersome progressive tax schemes for flat taxes. Flat taxes adhere to the basic, well-established principles of a good tax policy. Progressive taxes don't.

A flat tax promotes economic growth by encouraging investment and labor. Flat taxes treat taxpayers fairly, taxing labor according to the services the state provides rather than penalizing wage-earners who put in longer hours to provide for their families. And flat-tax rates reward investors who put their capital to work to create new jobs and opportunities in the community by taxing investments at a known, straightforward rate regardless of how well those investments ultimately perform. Progressive tax rates don't.

The Buckeye Institute's Economic Research Center estimates that a 2.75% flat tax would raise Ohio's GDP by $2.5 billion, add thousands of new jobs to employer payrolls, and juice statewide investments by $800 million in 2024. That kind of growth explains why so many states have already enlisted in the flat-tax uprising.

But wait, there's more.

Flat taxes make the tax code simple and transparent. Taxpayers can easily determine and anticipate how much tax they will owe. Progressive tax rates and a laundry list of tax loopholes, exceptions, and exemptions muddy those waters and make it harder for taxpayers to anticipate their tax obligations and expenses. A transparent tax code is a better tax code.

Unfortunately, Ohio's tax code remains anything but transparent or straightforward. The state's byzantine local income tax regime is still one of the worst in the nation and it continues to hammer small businesses and their 2.2 million employees. A state flat tax on income won't solve all of Ohio's tax problems, but it will help.

Of course, all tax reform should be done responsibly and without jeopardizing the long-term health of the economy. Tomorrow's taxpayers should not be handed a hefty bill for today's tax reform party. To ensure a sustainable, fiscally responsible flat-tax regime, the Ohio Senate should pursue several fiscal strategies.

First, as the Buckeye Institute has recommended, the state should eliminate budget earmarks for pet political projects and close tax loopholes that favor some taxpayers over others. Savings from those reforms will help offset the cost of a low flat-tax rate.

Second, Ohio law should establish revenue triggers that only allow for future tax cuts if adequate revenue has been raised to cover core government services. These triggers would act as a fiscal circuit breaker for tax cuts during unexpected economic distress and recessions.

Joining the flat-tax revolution responsibly will make Ohio more competitive in the global fight for businesses, capital investment, and labor. The state's population has lagged southern and western states that have adopted flat-rate income taxes and are now economically outperforming Ohio. Investment resources have gone searching for greener pastures, and businesses will increasingly flock to states that do not perversely punish their growth and success.

With record revenues in state accounts, there may never be a better time for Ohio to fundamentally reform its tax code. The flat-tax revolution has arrived, and Ohio must join the ranks.

Lawson is a research fellow at the Buckeye Institute.