Ohio’s unemployment rate recently rose to 10.5 percent, and the Ohio Legislature should be focused on attracting, retaining and creating jobs to get people back to work. However, House Democrats have hit another nail in the coffin by raising taxes during our state’s most difficult economy in decades.
In October, a measure passed the Ohio House that will increase the tax burden on Ohio's families. House Bill 318, which was promoted by Governor Strickland and championed by House Democrats, eliminates the final installment of the 2005 income tax reductions and will increase your family’s 2009 tax rates by 4.2 percent.
Supporters of House Bill 318 claim that this bill is not a tax increase but a “tax freeze.” Essentially, this legislation changes your 2009 tax rates back to your 2008 rates and, in the process, increases your taxes retroactively. This bill is a tax increase because it “freezes” your tax rates 11 months late, which raises your taxes rather than freezing them. As a firm believer that tax increases will discourage job growth and economic development, I maintain that raising taxes at this time is irresponsible and shortsighted because it will hurt families when they are most vulnerable.
There is no question that as a Legislature, we need to adapt to the challenges that are thrown our way, and immediate action was needed to address the nearly $900 million deficit. However, House Republicans predicted this budget crisis back in January, and since that time we have offered numerous proposals to spur job growth, reduce government waste, and make state operations more efficient and effective.
The House majority has time and time again disregarded our viable alternatives to tax increases. House Republicans remain hopeful that 2010 will bring cooperative, bipartisan conversations about Ohio’s future. We need to take immediate action toward fixing what is broken with our economy, so we can revive our dying industries and bring new businesses and families to this state.
Unless we take a closer look at Ohio’s fundamental budget problems, we will continue to experience deficits and job loss year after year. Instead of returning to the taxpayers to bail us out again, the Ohio House should work cooperatively to find sustainable solutions to help, not hinder, our economic recovery.
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