Flash Fact: Ohio repeals death tax to stop job loss

Oregon Transformation

After nearly 120 years, Ohio repeals its death tax to stop the hemorrhaging of small businesses and jobs

This map will look a little different come January 2013, when Ohio officially drops its death tax.  What’s striking is the fact that Oregon and Washington are the only two states west of the Mississippi River that continue to embrace this job-killing tax.

 

Why would Ohio remove a source of tax revenue at a time when state revenues are down?

For three important reasons, according to the Wall Street Journal:
1)   “The truth is it yielded little revenue—around 2% of the average local jurisdiction’s revenues;”
2)   “Dying in Ohio was expensive.  When federal and state taxes are combined, an Ohio family with a successful business could lose up to 40% of everything they had worked for;” and
3)   “The death tax was a major reason that business, jobs and capital have fled the state.”

Sources: 

http://www.threescale.org/p/40/

http://online.wsj.com/article/SB10001424052702304447804576414013906238754.html

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