With Butler County’s unemployment at 10.5 percent, state leaders must seek ways to attract and retain businesses in Ohio. Now more than ever, we need to focus our efforts on getting Ohioans back to work by making our state a great place in which to live, work and run a business.

As a small business owner myself, I fully appreciate the challenges that many businesses face today, and you can rest assured that, as your state representative, I will continue to voice the need for job creation and retention in our community.

Many studies have shown a direct correlation between tax rates and growth of business, and as a high-tax state, it is important that we take a close look at this relationship. An Ohio University study found that from 1998 until 2007, about 3.6 million people relocated from states with high income taxes (including Ohio) to states with no income tax (like New Hampshire and Texas).

In addition, states with no income taxes created nearly 90 percent more jobs and had 32 percent faster personal income growth than high-tax states. These figures confirm that since high tax rates punish small businesses for saving, investing and expanding, many companies will migrate to more business-friendly states where they have the best chance for success.

In 2005, the 126th General Assembly transformed Ohio’s out-of-date tax structure to match the increasingly competitive global market. A series of tax reforms passed the Ohio Legislature that improved Ohio’s tax structure and reduced the tax burden on many small businesses and families.

House Bill 66 initiated a 21 percent across-the-board income tax reduction that allowed Ohioans to keep more of their hard-earned money which, in turn, raised investments in the community. The bill also modernized Ohio’s business taxes to attract new business opportunities.

Although our community isn’t immune to job loss during this economic downturn, we have experienced the creation of some new jobs as a result of the tax reforms.

In 2007 the San Diego-based corporation, Amylin Pharmaceuticals, invested $500 million to establish a branch facility here in Butler County that would produce medicine to treat diabetes. According to the U.S. Bureau of Labor Statistics, Amylin Ohio LLC employs more than 550 employees, many of whom are in bioscience fields, and offers approximately $30 million in workers’ wages.

The president of Amylin Pharmaceuticals, Daniel Bradbury, explained that the decision to expand to Ohio was based on our consistent measures to improve Ohio’s business climate, and the reforms that reduced the tax burden exemplified our commitment to attracting new businesses.

It is critically important that Ohio continue to take similar strides and implement pro-business and pro-investment tax policies. Attracting businesses will have a much greater effect on our state’s economy by maximizing our market potential and creating lasting jobs. I am happy that the tax reforms of House Bill 66 were continued in the budget and I look forward to seeing our economy improve here in Butler County.

 Article Taken from: The Journal News