Ohio Statehouse by Official State of Ohio Site, licensed under
June 24, 2025
To: Members of the Ohio General Assembly
From: Americans for Tax Reform
Re: Supporting Pro-Taxpayer Policy in Final Budget
Dear Members of the Ohio House and Senate,
On behalf of Americans for Tax Reform (ATR), and our supporters across Ohio, I thank you for your service and overseeing tremendous progress in reducing the state’s tax burden.
The budgets approved by the House and Senate featured impressive fiscal restraint, and a focus on protecting Ohio taxpayers and businesses by rejecting damaging tax increases that the Governor proposed in his executive budget.
ATR strongly supports the historic 2.75% flat income tax rate included in the Senate’s plan – which would save Ohioans over $1 billion.
This flat tax rate would be the second-lowest in the nation, and beat Indiana’s soon to be 2.9% flat rate.
No-income-tax states grew at double the rate of the national average and their state GDP grew by 56% more (Tax Foundation). Eight of the top 10 in-migration states have no income tax, a flat tax, or are moving toward a flat tax.
The positive message the Senate’s flat tax would send to companies looking to invest, families looking to move, and Ohioans looking to stay, cannot be understated. It tells them Ohio is not just competing on good tax policy, the state is winning that competition.
Your efforts to reject tax hikes and take a massive step forward with a lower, flat income tax rate show a commitment to put Ohio taxpayers first. We applaud this approach and urge you to ensure the final budget reflects these commitments.
Last-ditch efforts from those who failed to make a case for various bad policies earlier in the process are likely ongoing. These may include attempts to revive tax increases, or insert risky policies into the budget without the oversight of the usual, deliberative process.
ATR stands with you in rejecting any attempts to add tax hikes to the budget plan that would offset the tremendous progress lawmakers have made in reducing the tax burden.
Specifically, ideas like doubling the tax on sports betting or increasing taxes on vapes should remain sidelined.
Doubling the sports betting tax (again) would give Ohio the highest rate among Red States at 40%, higher than all its neighbors, even Pennsylvania’s uncompetitive combined burden. This would be a crippling blow to jobs and growth in the industry and a boon for illegal betting markets that fund criminal networks.
Two years ago when lawmakers doubled the sports betting tax, the lower, original rate was bringing in as much revenue as the increased rate was projected to raise. The tax was totally unnecessary then, and a 40% rate now is shortsighted and punitive.
Such an increase would make legal betting less cost-effective than illegal betting. Studies show rates over 15% push consumers to illegal markets which fund organized crime and cartels.
Giving in to tax hikes only encourages tax hikers.
Tax hikes on tobacco and/or vaping are counterproductive. Vapor products have been proven to be at least 95% safer than combustible cigarettes and are more than twice as effective at helping smokers quit than traditional nicotine replacement therapies, while nicotine pouches have been approved as appropriate for the protection of public health by the FDA recently.
Only three out of 32 state tobacco increasesbetween 2009 and 2013 met tax revenue estimates.
Criminal smuggling networks also engage in human trafficking & money laundering. The US State Department has explicitly called tobacco smuggling a “threat to national security”.
Worse for those seeking revenues, an analysis from Mackinac Center shows such punitive rates can even reduce tax collections.
Keep last-minute, unvetted policies out of the budget. Major policies that have not been discussed have no place being rammed into the budget through conference committee.
ATR looks forward to a final budget that gives Ohio taxpayers reason to cheer, and delivers a wake up call to other states that the Buckeye State is here to win with a 2.75% flat tax.
Thank you for your continued leadership on behalf of taxpayers and great work this session.
Sincerely,
Grover Norquist
President
Americans for Tax Reform
