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Beavercreek, Ohio, United States

Thursday, January 14, 2010

Status quo will not create jobs for Ohio

How do we create jobs and attract businesses to Ohio, a state with one of the highest tax burdens in the nation? The short answer is, we can’t—mostly because in a highly mobilized economy where businesses can relocate to better business environments, Ohio can no longer compete.

We have a talented workforce and a long history of industrious success. So why has Ohio lost 231,000 taxpayers between 1993 and 2008, 105,000 of whom relocated within the past five years? The answer is simple, yet somehow consistently overlooked by those who control Ohio’s purse strings: our state taxes are too burdensome.

The root cause of Ohio’s financial crisis is a poor business climate and heavy tax system that has systematically repelled people from the state, which has led to a shriveled state economy and smaller tax base. At the same time, uncontrolled state spending has caused unreasonable taxes on Ohio’s remaining citizens.

Businesses are not static and will relocate to states that are most business-friendly, mostly those with the lowest taxes. In turn, entrepreneurs and college graduates will go wherever the jobs are, leaving Ohio with even less revenue and jobs than before.

And based on this past budget cycle, how can we expect Ohio’s Democrats to address another revenue deficit? You guessed it—with another tax increase.

Ohio has continued this dangerous downward spiral for years, and the effects have never been clearer. Whether the economy is prospering or struggling, we cannot afford any more tax increases that will reduce spending and investments by families and businesses.

In just three decades, Ohio’s tax burden has gone from the fifth lowest to the seventh highest in the nation. Today, taxes consume approximately 10.5 percent of Ohio’s income. Even regionally, our state has fallen far behind our Midwestern neighbors that all have moderate taxes.

Yet the high spenders in the Statehouse still wonder why we are bleeding jobs and families?

First and foremost, I believe that Ohio needs to alleviate some of the tax burden on small businesses. Small businesses create 80 percent of new jobs annually, and they are the leading employer of Ohioans. For this reason, encouraging business growth and retaining our homegrown businesses is one of my top priorities as your state representative.

Additionally, I have continued to advocate for a more fiscally responsible state government, one that is lean, transparent and accountable. Before the Legislature turns to the taxpayers to bail out the state’s finances, state leaders have an obligation to ensure that each tax dollar is being spent wisely and efficiently. This is why I have staunchly supported Republican proposals to streamline spending and reduce government waste. Without first making our state government work cost-efficiently, we will be unable to improve the tax code and make Ohio nationally competitive again.

The state cannot continue to soak the taxpayers with heavy taxes, because eventually we’ll realize that there are no taxpayers left to tax.

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