When Democrat Mayor Kapszukiewicz suggested his plan to increase spending by more than $40 million per year, it became clear why he chose to hold his State of the City at a zoo—because his budget is complete chaos.
The headline proposal is a massive $440 million income tax hike, raising Toledo’s municipal income tax rate to 2.75%. That ties Youngstown for the highest rate in Ohio.
The Mayor calls it a “once-in-a-lifetime chance,” but his constituents might not be so enthusiastic.
CEO and president of the Toledo Regional Chamber of Commerce, Wendy Gramza, was quick to point out that state and local taxes are one of the most significant factors a business considers when deciding where to locate, “This could make the city at least appear to be less business-friendly.”
The Lucas County Young Republicans came out against the tax hike as well. “Voters were promised a pro-business, pro-family alternative when they put Mayor Kapszukiewicz into office, but now we are seeing the same status quo of higher taxes and broken budgets,” said spokesman Josh Culling.
Ohio’s top income tax rate is already higher than three of its five neighbors (Pennsylvania 3.07%, Indiana 3.23%, and Michigan 4.25%) at 4.79%. Adding on to this already high rate, Kapszukiewicz’s proposed hike would crush Toledo families, and the economy, driving more people and jobs to other areas.
Why is it that while the President and Congress have passed tax reform to lighten the burden on Ohioan taxpayers, Toledo’s executive leadership seems determined to undercut that progress? Of course, this is not the first time Toledoans have been asked to shoulder a greater tax burden. One need not look far—only back to 2016—to find former mayor Paula Hicks-Hudson’s proposal to raise taxes in a budget that was already spiraling out of control back then. Toledoans overwhelmingly rejected that proposal, so, what makes Mayor Kapszukiewicz think that they would want one now?