LT. GOVERNOR VISITS NEWARK, DISCUSSES TAX REFORM

FOR IMMEDIATE RELEASE
March 31, 2005

Columbus, OH -- Lieutenant Governor Bruce Johnson today visited Newark, touring Universal Veneer Mill Corporation, laying out the need for tax reform in Ohio and providing insight into Governor Bob Taft’s plan to establish a tax system that promotes economic development.

“Ohio’s antiquated tax system is costly to firms that are already here, and hinders our ability to attract new business to Ohio,” said Johnson, who also serves as state development director. “In addition to making Ohio more attractive for new business and the creation of good jobs, our tax reform plan will also put money back into the pockets of Ohio families.”

Governor Taft’s tax reform plan would cut personal income tax rates by 21 percent over five years; eliminate state income tax for Ohioans making less than $10,000 a year; and phase out the tax on equipment and inventory and the corporate franchise tax, replacing them with a broad-based, low-rate commercial activity tax. The plan also calls for spending $390 million to hold schools and local governments harmless from loss. Overall, the plan would collect $800 million less over the next two years than the state would receive if today’s tax rates remained in place.

During his visit to Universal Veneer, Johnson toured the facility and met with company founder and CEO, Dieter Heren, company employees and local economic development officials on how tax reform will enable Ohio companies to become more competitive in today’s marketplace. Universal Veneer is a German-owned manufacturer that buys American hardwood logs to create veneer used in the production of door panels, furniture and other wood products. The finished product is sold to domestic customers and to clients in 13 foreign countries. The company’s two Licking County operations employ 160 people.

Governor Taft’s Tax Reform Plan has received support from a broad and diverse coalition which includes the Ohio Business Roundtable, the Ohio Chemistry Technology Council, the Ohio Dental Association, the Ohio Economic Development Association, the Ohio Farm Bureau Federation, the Ohio Manufacturers’ Association, the Ohio Society of Certified Public Accountants, the Ohio State Bar Association and the Ohio State Medical Association.