The Buckeye Institute Identifies $1.8 Billion in Tax Loopholes that Should be ClosedApr 10, 2018
Columbus, OH – The Buckeye Institute today released a list of $1.8 billion in tax loopholes that should be reviewed by the Ohio’s Tax Expenditure Review Committee and considered for elimination to simplify Ohio’s tax code and reduce Ohio’s tax rate. Eliminating these loopholes without reducing the tax rate would be a tax increase on the citizens of Ohio.
“Ohio has made progress in recent years to improve the state’s tax system. Yet, more can be done to build on that success and to further strengthen Ohio’s job creation climate,” said Greg R. Lawson. “That is why the work of the Tax Expenditure Review Committee is so important. By closing the loopholes we have identified, policymakers will be able use those savings to lower tax rates to keep Ohio’s economy growing.”
The Buckeye Institute recommended closing 20 loopholes that total $1.8 billion in savings which should be used to reduce Ohio’s tax rate, including:
- The notorious NetJets loophole for those who buy shares of corporate jets;
- The motion picture tax credit, which has been eliminated in other states;
- Credits for political campaign contributions; and
- The job retention and creation tax credits that favor one business over another.
Tax expenditures, or loopholes, no matter how well intentioned, add complexity to Ohio’s tax code and favor specific groups over others. As outlined in Buckeye’s Tax Reform Principles for Ohio, a simpler, flatter tax code that allows all businesses to compete on an equal playing field should be the goal of Ohio policymakers.
The Buckeye Institute first called for the creation of the review committee in 2011, when, along with the Center for Community Solutions and the Greater Ohio Policy Center, it identified 20 loopholes that should have been closed.
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