Ohio Capital Journal: Who benefits from a flat state income tax rate?
UC economics professor weighs in on proposed Ohio tax change
A proposal making its way through the Ohio House of Representatives has many economists weary of the potential implications, but David Brasington, PhD, James C. and Caroline Kautz Chair in Political Economy and professor of economics at the Carl H. Lindner College of Business, offers a different perspective.
David Brasington, PhD, James C. and Caroline Kautz Chair in Political Economy and professor of economics
The Ohio Capital Journal tapped a panel of economists from across the state of Ohio to provide their perspective on House Bill 1. The bill, introduced by Rep. Adam Mathews and currently in committee, would amend the current tax code to establish a flat state income tax of 2.5% that would be applied equally regardless of income.
Currently, Ohio employs a progressive income tax with those making less than $26,050 not subject to income taxes and those making above that amount having a tax rate between 2.765 and 3.990%.
Many are concerned with the potential impact this may have on income inequality in Ohio, but economists are split on whether this would help or hurt the state’s economy.
Brasington has a more positive outlook compared to his fellow economists. He believes this amendment could present greater opportunities to municipalities who enact strategic local tax policies.
“It will make local public services rely more on local taxation, and attract people and new businesses to the best-run municipalities,” he said.
See more from the Ohio Capital Journal.
Featured image at top: Standard tax documents. Photo by Kelly Sikkema on Unsplash
Innovation Lives Here
The University of Cincinnati is leading public urban universities into a new era of innovation and impact. Our faculty, staff and students are saving lives, changing outcomes and bending the future in our city's direction. Next Lives Here.
Related Stories
Intrapreneurship: Strategies to promote internal innovation
February 27, 2026
Intrapreneurship encourages employees at large companies to innovate and test ideas with an entrepreneur’s level of freedom. Learn how to become an intrapreneur in your organization.
How will AI change the workforce?
February 25, 2026
UC Lindner College of Business Assistant Professor Jeffrey Shaffer shares his expertise with WVXU's Cincinnati Edition on how artificial intelligence is changing the employment landscape.
Companies see up to 700% return on political investments
February 25, 2026
Accounting professor Adam Olson recently published a study in the journal of Accounting, Organizations and Society called, “The effect of political connections on COVID-19 stimulus.” Using the COVID-19 stimulus checks as reference, his team looked at how much benefit companies got if they donated to certain PACs. This dataset was a new opportunity to measure direct impact, as usually benefits from donations take the form of tax breaks or new laws down the road, not a direct deposit of cash.