Think carefully with tax cuts
Proposals from advocacy groups and lawmakers have plenty of Ohioans talking about what it would mean to reduce or eliminate property taxes in the state. And certainly, state government should always be working to leave as much money in residents’ pockets as possible.
But responsible public officials must be careful not to venture into extreme ideas that would do more harm than good.
State Sen. Al Cutrona, R-Canfield, has sponsored a bill to provide a 50% property tax reduction for any homeowner at least 65 years old. Income would NOT be a factor.
“Whatever your current situation, this would be a clean 50% reduction,” said Cutrona. “We are taxing the elderly out of their homes at this point. It’s ridiculous. A lot of property tax reform is needed and we are working on that. In the interim, we have to take care of our most vulnerable population, which includes our elderly.”
It is tempting to wonder why, if Cutrona’s concern is for those seniors who are in such a tenuous financial position they are in danger of losing their homes, he has included all income brackets in the plan.
It would mean a loss of approximately $1.5 billion in revenue annually for the state. Cutrona acknowledges that. Voters will have to ask themselves why he chose to target the $500 million per year received by Ohio’s libraries when he said “We can cut the fat off the budget. The state’s operating budget is a huge number.”
If it is $1.5 billion overblown, and Cutrona knows how to fix that, he needs to speak up with more specifics than half-a-million dollars for an important, accessible educational resource for every Buckeye State resident.
On the other hand, Cutrona and lawmakers considering the proposal must ask themselves what damage might be done if that amount of money disappears. They must also bear in mind Ohio is losing population but the number of those 65+ has been steadily increasing here for decades and there is no sign of that trend reversing any time soon. What will lawmakers do when that $1.5 billion loss only gets deeper? (Remember, those over 65 who own their own home and have total household income under $40,000 already also get a homestead exemption, which would remain under Cutrona’s plan).
“When you reach the age of 65, regardless of your income, you should be able to get a benefit on your property taxes,” Cutrona said. But in 2023, 15.8% of Ohioans over age 65 were still part of the workforce. And, again, not all of those at that age or above have fixed household incomes that make them vulnerable because of expenses such as property taxes.
Perhaps Cutrona has the seeds of a good idea that he was just trying to make simple — “clean” and easy. But to believe that there will always be enough money flowing into the general revenue fund to make up for a $1.5 billion loss — or to offer up something as important as our state’s libraries as sacrifice — isn’t the responsible way to get it done.