Chart of the Day

Dayton Daily News:

Taxpayers filing last-minute returns today will be paying the lowest state income tax Ohio has seen in 30 years.

The rates that went into effect this year for last year’s earned income continue a downward trend and haven’t been lower since 1981 for people earning less than $80,000 per year, according to a Dayton Daily News analysis of Ohio Department of Taxation records.

While income tax rates have fallen, income tax collections have continued growing. Increased revenue from income tax collections is not directly caused by the falling rates, according to Richard Stock, University of Dayton’s Director of Business Research Group.

“Tax collections rise when incomes rise,” Stock said.

“Incomes increase when gross domestic product increases. Real GDP has been rising all through this period except at particular recessionary points ... so you would expect incomes and therefore tax collections to rise.”

Wait a second, income tax collections have continued to grow?  We are at the same collection rate as we were in 2005, and that isn't in inflation adjusted dollars.  I don't think you can point at a chart not adjusted to inflation and say that tax collections continue to rise.  Give me a chart adjusted for inflation please

I just heard a coworker complaining about how unfriendly to business Ohio is.  Give me a break.  Ohio bends over backwards for business.  But income taxes aren't friendly to businesses.  Sure, tax cuts which lead to cuts in education spending don't help prepare an educated workforce, but hey, that gives businesses something else to complain about.