The state of Ohio is lagging in the quality of public services, which has been greatly exposed by the COVID-19 pandemic. Policy Matters Ohio Senior Project Director Wendy Patton discussed a Policy Matters Ohio proposal designed to increase revenue on America’s Work Force Union Podcast.
Revenue in Ohio
When the pandemic hit Ohio, the public systems meant to help residents were exposed as inefficient and archaic. The state was unable to keep up with unemployment claims and people were left to fend for themselves. Medical infrastructure was unable to keep up with demand, leaving questions around the ability of the state to collect accurate data.
Patton provided reasons for these failures. She said years of tax cuts have created a situation that was destined to blow up.
She said that Policy Matters Ohio has crafted a plan to modernize Ohio’s public health and infrastructure systems. In the plan, the bottom 13 percent of Ohioans would receive a tax cut, easing the burden and providing them some economic freedom. She added that the plan would not increase taxes on 97 percent of Ohioans. She said the top percent of Ohioans will begin paying their fair share after decades of enjoying tax breaks.
Patton said the new plan would increase Ohio’s revenue by $2 billion.
Prioritizing public services
Patton said that Ohio has a problem with where priorities are placed. She said that $7 billion has been removed from the states revenue due to years of tax cuts. The result is a system of public services lagging behind other states.
In order to improve where Ohio ranks with regards to public services, Patton said Ohio need to prioritize public spending. Increased funding for schools and public health will see the state of Ohio return to a high level of prosperity for all residents.
The Policy Matters Ohio Plan
Patton expanded on the plan proposed by Policy Matters Ohio. She said that Policy Matters Ohio has been sending the plan to Ohio lawmakers and putting it out into the public.
She said the group is facing backlash from some lawmakers regarding the tightening of the LLC loophole. This is a loophole that helps business owners and individuals set their business up for a tax plan that does not charge income tax on the first $250,000 earned. She said the state misses out on $1 billion annually in tax revenue.