Ohio House Bill Proposes Eliminating Capital Gains Tax
A Republican bill would eliminate capital gains taxes in Ohio, with the top 1% of earners saving over $6,400 annually while lower-income residents save at most $42.
COLUMBUS, OHIO — A Republican lawmaker introduced legislation to eliminate capital gains taxes in Ohio, sparking debate over whether the proposal would benefit wealthy residents at the expense of middle and working-class families.
State Rep. Tom Young, R-Washington Township, introduced Ohio House Bill 617 to remove capital gains from state and local taxes. Capital gains are profits from selling assets like stocks, bonds, real estate, artwork, and jewelry.
“This would make Ohio a place that rewards investment and economic success, not one that discourages it,” Young said, arguing the measure is necessary to attract and retain wealthy investors in the state.
Tax Break Would Heavily Favor High Earners
Policy Matters Ohio analyzed the proposal and found it would disproportionately benefit the state’s highest earners. According to the organization’s analysis using data from the Institute on Taxation and Economic Policy, 80% of Ohioans on the lower income levels would save at most $42 annually.
Meanwhile, the top 1% of earners — those making $1.8 million or more — would save an average of $6,424 per year under the proposal. This group would receive 61% of the total tax break benefits, while the bottom 60% of earners would receive just 3%.
Critics Call It Another Giveaway to Wealthy
Policy Matters Ohio criticized the bill as “yet another giveaway to the richest while middle and low-income Ohioans struggle just to pay their bills.” The organization argued that eliminating capital gains taxes would primarily benefit those who already have significant assets to sell.
The debate reflects ongoing tensions in Ohio over tax policy, with Republicans typically favoring cuts they say will stimulate economic growth and Democrats arguing such measures primarily help wealthy residents while reducing funding for public services.
Capital gains taxes apply to profits made from selling investments or other assets, meaning they primarily affect individuals with substantial holdings in stocks, real estate, or other valuable items. The tax is separate from income tax on wages and salaries from employment.
House Bill 617 would need to pass both chambers of the Ohio General Assembly and be signed by the governor to become law.
