Study Finds 2005 Tax Reform Brings Positive Changes in Northeast Ohio

Wednesday, July 30, 2008

Cleveland, July 30, 2008 - Almost half-way through the five-year rollout of the tax reform, Ohio is already seeing vast improvements in business expansion and development. 

In 2005 the Greater Cleveland Partnership (GCP) collaborated with the Ohio Business Roundtable to pass aggressive tax reform aimed at bolstering Ohio's business economy.  Working with law makers and state representatives, this public-private partnership was able to implement a new tax code that was written to encourage business and economy growth in Ohio. 

The tax reform centers around the elimination of taxes on capital investment, inventory, sales or goods and services to customers outside of Ohio, as well as corporate income and franchise taxes, combining to help make Ohio the ideal location to build a successful global business.  Companies are no longer taxed for investing in capital improvements necessary to be competitive.  In addition, Ohioans now enjoy a personal income tax that was reduced by 21 percent.

The GCP's focus on economic development and growth is what prompted the interest in the tax reform.  Members of the GCP Board of Directors, including Alexander Cutler, chairman and CEO of Eaton Corporation; A. Malachi Mixon, chairman and CEO of Invacare Corporation; John Stropki, Chairman, president and CEO of Lincoln Electric; Andre Thornton, president and CEO of ASW Global; and Don Washkewicz, chairman and CEO of Parker Hannifin Corporation and are featured in the new Ohio Business Roundtable brochure  that outlines the positive results.

Ohio's new tax structure has been described as 'business-and investment friendly' for a good reason.  Most industries have found that the new tax structure translates into a significant reduction in business tax liability.  Working dollars that were previously expensed as taxes can now be redistributed to support capital investment and other needs. Cutler expressed his enthusiasm for tax reform in the brochure, stating, "The new tax code creates a much more business-and investment-friendly climate in our state.  I am especially delighted that the Greater Cleveland Partnership was able to partner with the Ohio Business Roundtable in this accomplishment."

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