How Vivek Ramaswamy's income tax policies would hurt Ohioans basic needs
02/19/2026, written by Erin Czerniak
Governor candidate Vivek Ramaswamy has repeatedly pledged to eliminate income tax in Ohio. He assures us that the change would not hurt schools or other core services, but the numbers have us thinking otherwise.
Ohio’s income tax brings in about $10 billion every year, or about a quarter of the state's entire operating budget. This money helps pay for public schools, Medicaid, public safety, colleges, and services for seniors, veterans, and people with disabilities.
Without the income tax, the state would face a $10 billion gap almost overnight. Ramaswamy says economic growth could make up the difference, but Ohio’s population has stayed mostly flat for years. Replacing that much money would require growth far beyond anything the state has seen in modern times.
What it means for schools
Public schools are one of the largest parts of the state budget. If funding were cut evenly to make up for lost income tax revenue, K–12 schools could lose about $2.44 billion in state aid.
Districts would have two choices: cut services or raise local property taxes. To replace that money locally, property taxes would need to increase by about 20% statewide.
Cuts of that size could mean:
Our students would be crammed into larger class sizes.
We’d have fewer teachers and support staff.
Students with disabilities would lose critical support services.
Fewer bus routes and meal programs.
What it means for healthcare
Medicaid covers about 3 million Ohioans, including children, seniors, pregnant women, and people with disabilities.
The state’s share of Medicaid costs about $8 billion a year. The proposed tax cut would remove more revenue than the entire state share of Medicaid.
If the state reduces its spending, it also loses federal matching dollars. For every $1 the state cuts, Ohio loses about $1.87 from the federal government. Millions would lose coverage and rural hospitals would close.
Who pays instead?
Eliminating the income tax does not eliminate the cost of running the state. It shifts how the state pays for services.
For many workers, the tax savings might be around $100 per month. But to replace $10 billion, we’d be paying that savings back with a mix of:
Higher property taxes
Higher sales taxes
Deep cuts to services
In the end, Ohio’s bills don’t disappear. They will still come due, and many Ohio families would feel the impact.
*For more information, read our new report: “What Vivek Ramaswamy’s Income Tax Plan Would Mean for Ohio”