WASHINGTON (WCMH) – A new report claims Ohio has one of the nation’s worst tax codes for business.
The Tax Foundation, a think-tank in Washington DC, released its annual State Business Tax Climate Index on Tuesday.
The think-tank said states with complicated tax codes did poorly on the ranking, while states with transparent, neutral and fair tax codes did well. The report ranked the tax systems of all fifty states and put Ohio at number 45.
Jared Walczak, senior policy analyst at the Tax Foundation, said Ohio uses an “antiquated” model to tax businesses.
“It doesn’t care about profitability of a business, whether you’re profitable or not — you’re paying a significant tax burden. You’re paying on things that have very little to do with your actual economic output, but rather your corporate structure,” said Walczak.
Walczak said Ohio’s system could discourage companies from moving to the state.
“Real-world businesses look at that and say that makes us less competitive operating in a state like Ohio,” said Walczak.
Walczak said he’s seen states hold back on major changes to their tax codes this year, as Congress works on a federal tax reform plan.
“A lot of states took a wait and see approach,”
Republicans want to pass a tax reform bill by the end of the year.