Higher taxes are NOT the answer

Governor Strickland and House Democrat's proposal to raise taxes on families and small businesses passed the Ohio House and Senate in December. House Bill 318 will eliminate the final installment of the income tax reductions set forth in 2005, which will force taxpayers to relinquish an additional $851 million in new taxes.

Governor Strickland and House Democrats supported the 4.2 percent tax increase while ignoring House Republican calls for waste reduction and government accountability. With a heavier burden being forced upon the shoulders of entrepreneurs, House Republicans fear the effect this tax increase will have on Ohio's long-term job potential.

"We have to keep in mind the fact that taxes are more than just a way for government to raise revenues, they are also a way to modify behavior.” Martin said. “When we want to encourage a certain behavior we offer tax incentives, when we want to discourage a certain behavior we increase taxes. House Bill 318 will discourage investment by raising taxes on the people who create jobs.”

Small businesses have generated 64 percent of net new jobs over the past 15 years, according to the Small Business Association. They also employ approximately half of all workers in the U.S. and pay 44 percent of total private payroll.

House Republicans believe that raising taxes in this economy will ruin Ohio's competitiveness in creating jobs and attracting new business opportunities. With one of the top ten highest state income tax rates in the country, further raising Ohio's income taxes will compel families and businesses to relocate elsewhere.

“House Bill 318 is a tax increase on all levels, affecting the rich, poor, middle class and small businesses,” Martin said. “Ohio's leaders need to make a choice whether they would rather create jobs or continue to feed our bloated government with more waste and inefficiencies.”