Ramaswamy Proposes Phasing Out Ohio Income Tax Over Eight to Ten Years
GOP candidate’s plan would eliminate state income tax gradually, starting with capital gains, but lacks details on offsetting $10B revenue loss.
COLUMBUS, OHIO — Republican gubernatorial candidate Vivek Ramaswamy unveiled a plan to eliminate Ohio’s income tax over an eight to ten-year period, aiming to attract businesses to the state by starting with capital gains tax elimination in his first budget.
The proposal would begin with removing taxes on capital gains during Ramaswamy’s initial budget cycle, according to reporting by The Columbus Dispatch’s Jessie Balmert. The complete phase-out of income taxes would occur gradually over nearly a decade.
Economic Impact and Revenue Concerns
The plan seeks to make Ohio more competitive for business attraction and retention. However, critics have raised concerns about the proposal’s potential consequences for state funding.
The elimination of Ohio’s income tax would result in an estimated $10 billion annual revenue loss for the state. Ramaswamy has not yet specified which government programs would face cuts to compensate for this significant reduction in state income.
Criticism Over Wealth Distribution
Opposition voices argue the tax elimination plan would disproportionately benefit wealthy Ohioans while potentially harming essential state services. Critics worry the revenue loss could force major reductions in critical programs including education funding and Medicaid services.
The lack of detail regarding offsetting budget cuts has become a focal point of criticism as the gubernatorial campaign continues. Without specified program reductions, questions remain about how the state would maintain current service levels while operating with substantially reduced revenue.
The proposal represents a shift in Ohio’s tax policy approach, following national trends toward state income tax reduction or elimination that several states have pursued in recent years.
