Analysis: Ramaswamy's Ohio Tax Plan Benefits Wealthy, Corporations; Shifts Burden to Working Families
Vivek Ramaswamy's campaign for Ohio governor proposes tax cuts that independent analyses suggest would primarily benefit the wealthy and corporations, shifting the tax burden to working families. His agenda includes eliminating income and capital gains taxes, and rolling back property taxes, while also advocating for aggressive expansion of AI data centers in the Ohio River Valley. These data centers have received significant tax breaks, contributing to rising residential electric bills and sparking a citizen-led drive to restrict large facilities.
Vivek Ramaswamy, a Republican candidate for Ohio governor, is campaigning on a platform of tax cuts, including eliminating Ohio's personal income tax, repealing the capital gains tax, and rolling back property taxes. Independent fiscal analyses from organizations like the Ohio Legislative Service Commission, the Institute on Taxation and Economic Policy, Policy Matters Ohio, and Innovation Ohio, suggest that these proposals would disproportionately benefit wealthier Ohioans and large corporations.
Ramaswamy's plan to phase out the personal income tax, which generates approximately $10 billion annually for state services, is projected to create a significant revenue shortfall. Critics argue that replacing this lost revenue would necessitate substantial cuts to public services or regressive increases in sales or property taxes. The proposed repeal of the capital gains tax, introduced as House Bill 617 by Rep. Tom Young, is estimated to cost the state over $600 million annually, with more than 80% of the benefit going to Ohioans earning over $200,000.
His agenda also includes a push to make the Ohio River Valley a hub for AI data centers, which have received an estimated $2.5 billion in state and local tax breaks since 2017. These incentives, including sales and property tax abatements, have been linked to rising residential electric bills, with data centers consuming as much electricity as tens of thousands of homes. The strain has led to bipartisan scrutiny, a pause on new tax exemptions by Gov. Mike DeWine, and a citizen-led initiative to restrict large data center facilities. Ramaswamy's financial disclosures also reveal significant capital gains and holdings in sectors that stand to benefit from data center expansion.