Ohio Gov. John Kasich and his party have lately expressed concern over the fact that many of our state's retirees are leaving Ohio for other states, particularly Florida. The principal reasons for this outmigration are apparently a desire for warmer winter weather and the fact that Florida has no estate or income tax. Of course we can do nothing about the weather, but keep in mind that Ohio's weather is as good as or superior to Florida's for at least half the year - think heat, humidity and hurricanes!
I suspect that it's primarily Ohio's income tax that leads Ohio retirees to decide to become Florida residents instead of just wintering there. The estate tax may also have some bearing, but I believe that most retirees are much more concerned with maximizing their incomes while they're still living than they are about a tax that will be paid after they're gone. So instead of making the abolishment of the estate tax a priority I suggest the GOP instead do something about the income tax paid by retirees.
For at least ten years the maximum Ohio tax credit for retirement income has been $200. Why not increase it significantly, to an amount that would eliminate the income tax liability on most retirees? I suspect that were this to be done the outmigration to Florida would decrease dramatically. Seniors could still spend the winter months in Florida avoiding Ohio winters, but they would have no reason to change their residency. It's an idea worth considering.
No comments:
Post a Comment