Ohio is one of many states that are facing a budget shortfall. One reason for the state's budget woes is the permanent income tax cuts championed by former Governor Bob Taft. The drastic cuts amount to an across the board twenty-one percent reduction in income tax rates over five years. The last round of these cuts is scheduled to take place in 2009.
Earlier this year, Policy Matters Ohio released A Step Towards Fiscal Balance: Options for Ohio's Income Tax.The report cites ITEP data and offers realistic alternatives to policymakers interested in raising revenue to fill the budget gap instead of relying on painful reductions in services. For example, freezing income tax rates at 2008 levels is offered as an option that should not be dismissed.
Momentum is building for these sound solutions. This week an Akron Beacon Journal editorial cited this report saying that it, "offered the start of an answer for a state lacking the resources to cover basic services."