Has Ohio become far too generous with tax breaks?

Toledo Blade: The state of Ohio spends nearly as much to hand out tax breaks – about $8.5 billion this year – as it does to support local public schools. A new report concludes that these tax exemptions, credits, and deductions tend to stay on the books forever without regular Statehouse oversight, or any accountability at all. In the year of the supposedly angry voter, such findings are worth getting angry about.

The review by the progressive advocacy group Policy Matters Ohio notes that state lawmakers have increased spending on ‘tax expenditures’ without subjecting them to the same sort of routine review they apply to budget items, such as aid to schools, colleges, and human services. Policy Matters researchers cite 128 tax breaks, some of which go back decades ‘” and one that began in 1896.

SOME BREAKS SHOULD STAY

More than half of the state’s spending on tax expenditures goes to breaks that ostensibly promote economic growth and job creation. Some tax breaks, such as the state’s earned income tax credit and the sales tax exemption for prescription drugs, are undoubtedly worthwhile and should continue.

But others were enacted when Ohio’s economy looked a lot different from the way it does today. Reviewing all tax expenditures to determine which ones still have value – and which don’t – could save taxpayers a lot of money, while making state spending fairer, more efficient, and more transparent.