LT. GOVERNOR VISITS LUCAS COUNTY, TALKS TAX REFORM

FOR IMMEDIATE RELEASE
April 25, 2005

Columbus, OH -- Lieutenant Governor Bruce Johnson visited Sylvania today, meeting with members of the Sylvania Community Improvement Corporation and the Sylvania Chamber of Commerce. While meeting with the local business leaders, he provided insight into Governor Bob Taft’s plan to establish a tax system that promotes economic development and the competitiveness of Ohio’s assets.

“Ohio’s outdated tax system hinders our ability to attract new business and is expensive to companies that are already here,” said Johnson, who also serves as state development director. “While making locations like Lucas County more attractive to new businesses, our tax reform plan will create good jobs and 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.

The tax reform plan, which passed the Ohio House of Representatives recently as part of the biennial budget bill, 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. Local supporters to date include the Perrysburg Area Chamber of Commerce, Carbo Forge & Machine Inc. of Fremont, Children’s Discovery Center of Toledo, Johns Manville of Waterville, Technology Resources, Inc. of Toledo, and others.

Johnson noted that the plan must still pass the Ohio Senate. “We are encouraged that the House of Representatives has passed our plan and that so many groups are backing it,” Johnson said. “We now need everyone that wants to strengthen Ohio’s economy to contact their local legislators to voice their support.” For more information on the plan, please visit www.jobsforohio.com