As a certified public accountant, my business is in helping individuals file their taxes accurately and efficiently. Since joining the Ohio House, I have been fortunate to serve on the Ways and Means Committee, which is the primary tax policy committee in the House.


Based on my background and experience, I took an added interest in the tax reforms that were included in the state budget, which Governor Kasich signed into law at the end of June. Income taxes on businesses will be cut by 50 percent on their first $250,000 of income. Individuals will see an income tax cut of 10 percent over the course of three years.


I have long been a proponent of moving away from the income tax system because it places a burden on people’s success, creativity and work ethic. The fairest way to collect taxes, in my opinion, is to have a system that is universally applied to everyone and that gives people more flexibility for what they pay based on their behaviors and habits. The sales tax accomplishes exactly that because people know the parameters of the tax and can adjust accordingly. The budget increased the sales tax by 25 cents on every $100 of spending.


During budget debate on the House floor, there was some talk about this budget actually increasing taxes on some Ohioans by about $12 a year. I think this is a very general statement that deserves some clarification. The fact is that there are some who pay no income taxes at all. Therefore, an infinite decrease in income tax percentage makes no difference to them because they have no skin in the game to begin with. After all, you can’t divide by zero.


Much of the tax relief included in the budget is going to small businesses, which create the majority of the jobs here in Ohio. By keeping more money in the hands of those small businesses, they will have the ability to hire more of those people who are still in the bottom tax bracket or who have no income. Additionally, lower taxes makes Ohio’s job-creation climate more attractive to out-of-state businesses that are considering locating to a state that is more tax friendly. This also provides more opportunity for job creation.


The impetus behind these tax reforms was to produce more income-earners in Ohio. These policies work in harmony with each other because with more income-earners paying into the state’s tax system, less is required from each person. It is my hope that in the near future, more Ohioans can benefit from yet another tax reduction.

 
 
 
  
Featured Posts

Representative Scherer Sworn In As State Representative Of The 92nd House District

 
Columbus - 

State Representative Gary Scherer (R-Circleville) yesterday was sworn in as a member of the Ohio House of Representatives for the 132nd General Assembly. He represents the 92nd Ohio House District, which includes Fayette County, as well as portions of Pickaway and Ross counties.  This will be his third full term as state representative.



 
 

Rep. Scherer Encourages Constituents To Submit Online Legislative Survey

 
COLUMBUS - 

State Representative Gary Scherer (R-Circleville) has set up an online legislative survey in an effort to gain feedback from the residents of the 92nd Ohio House District regarding a variety of state issues. The survey can be accessed at http://tinyurl.com/SchererSurvey2013.



 
 

"Shared Work" Program Passes House

 
COLUMBUS - 

The Ohio House of Representatives unanimously passed Sub. House Bill 37,, legislation sponsored by State Representatives Mike Duffey (R-Worthington) and Gary Scherer (R-Circleville) to help prevent layoffs across the state. The bill is now headed to the Ohio Senate where a companion bill has already passed, indicating a likelihood of bill passage in the near future.