Columbus, OH – Today, Innovation Ohio released a new policy report analyzing the income tax policies proposed by GOP gubernatorial candidate and Texas businessman Vivek Ramaswamy. 

The report is online here. 

Innovation Ohio’s analysis found that Ramaswamy’s proposed tax plan would be extremely harmful for Ohio families. If enacted, it would:

• Cut funding for public schools, risking bigger class sizes, fewer bus routes, and weaker education for our kids;

• Slash Medicaid, taking away healthcare from Ohioans;

• Risk defunding local police and fire departments, workforce programs, mental health services, and programs for seniors;

• Cut taxes for the wealthy while raising taxes for most Ohioans. 

Ramaswamy’s plan would lead to a nearly $10 billion hole in the state budget. This would lead to massive cuts in key programs like Medicaid and public schools. Making up for this lost funding would require a 20% increase in property taxes or a 65% increase in sales taxes. 

While Ramasway claims that his plan will lead to stronger population growth and won’t harm schools, the facts are not on his side. The report notes that other states have tried this approach to taxation and are still cleaning up the fallout years later. In Kansas, after eliminating income taxes, the state saw slower population growth, cuts to schools and highways, higher sales taxes, credit rating downgrades. The GOP-controlled legislature eventually reversed the policy due to its failure. 

“Vivek Ramswamy’s plan is simple: cut taxes for wealthy people like him, while gutting schools, cutting healthcare, and raising taxes on the rest of us,” said Innovation Ohio President Michael McGovern. “Ohio families once again get screwed while rich Wall Street vultures like Vivek Ramasway get another tax handout.”