Reduced Taxes, But Highest Unemployment Rates in Ohio

As we focus on job creation in Ohio, we continue to debate what are the most effective steps for our economic future? We have often heard that simply by reducing taxes we will create jobs and attract people to Ohio.

As recently as 2009, Ohio was leading every state in the country with $800-million in reduced taxes for Ohio residents and business owners. During that same year, Ohio also had one of the highest unemployment rates in the country of well over 10-percent.

Economic Development leaders stress that business owners look for a skilled and well-educated workforce, affordable utilities, a strong quality of life and affordable housing, before focusing on taxes.  Also, business owners want to locate in a community with strong police and fire protection. This doesn’t mean that taxes are totally irrelevant but taxes clearly rank lower among many motivators.

A recent study by Policy Matters Ohio found that similar concerns apply when people move from state to state. The study looked at whether states that lower their income taxes attract or retain more people. The findings showed that taxes do not affect interstate migration. The leading factors were job prospects, housing costs, family considerations and weather.

We must work together in Columbus to make sure Ohioans receive a quality public education, an affordable college education, and funding for local police and fire protection to produce a strong quality of life for our families. These factors are critical to growing our economic future for our families and our state.