News and Analysis
List of Expiring Federal Tax Breaks for Businesses
February 25, 2022Forty federal tax provisions affecting individuals and businesses expired in 2021. OMA Connections Partner CliftonLarsonAllen has published this summary of popular business tax breaks that expired in 2021 — and the potential impact on your business. 2/24/2022
Study: U.S. Heavily Reliant on Individual Income Taxes
February 25, 2022When it comes to federal and state taxes in the U.S., individual income taxes are the primary source of tax revenue. According to the Tax Foundation, 41.1% of total U.S. tax revenue was derived from personal income taxes, in large part because more than half of U.S. business income is reported on individual tax returns. 2/23/2022
At a Glance: Ohio’s Tax Rates for Sales, Personal Income
February 18, 2022A new comparison by the Tax Foundation shows Ohio’s top individual income tax rate (3.99%) is competitive compared to most other states. (Ohio is currently one of 17 states that allow a local income tax, which was not considered in the Foundation’s comparison.)
Meanwhile, another Foundation study shows Ohio’s average combined state-and-local sales tax rate (7.22%) is 20th highest in the U.S. — and higher than neighboring states. Ohio’s state sales tax rate is 5.75% (27th highest), while the average local sales tax rate is 1.47%. 2/14/2022
Year-Over-Year Inflation for Producer Prices Nears 10%
February 18, 2022Year-over-year wholesale inflation rose 9.7% in January compared to a year earlier, according to the U.S. Labor Department’s producer price index. In his analysis, Chad Moutray, chief economist for the National Association of Manufacturers, says this latest inflation data “will put continued pressure on the Federal Reserve to tackle inflation.”
Meanwhile, the Bureau of Labor Statistics has published this chart to show where consumers are seeing the largest price increases. 2/15/2022
Inflation Can Create Tax Opportunities
February 18, 2022America is experiencing the worst inflation since the early 1980s. While this presents major challenges, it also creates tax opportunity, according to OMA Connections Partner CliftonLarsonAllen. The firm has produced this video to discuss the advantages of a last-in-first-out (LIFO) method of accounting to value manufacturing inventory. 2/14/2022
Ohio’s UI Overpayments During Pandemic Near $6B
February 18, 2022Ohio has overpaid $5.8 billion in unemployment insurance (UI) benefits during the pandemic. The Ohio Department of Job and Family Services reported that the overpayments were attributed to fraudulent and non-fraudulent activity in both traditional unemployment (100% paid by employers) and federal Pandemic Unemployment Assistance (PUA).
About $4.5 billion of the overpayments was tied to non-fraudulent PUA payments, as illustrated in these pie charts. Since the start of the pandemic, Ohio has paid more than $24 billion in UI benefits to more than 2.4 million claimants. 2/14/2022
Ohio’s Property Value Reappraisals
February 18, 2022Ohio counties are required by law to reappraise real property tax values every six years — and update values in the middle of that cycle. However, this cycle isn’t evenly distributed amongst the 88 counties.
OMA Connections Partner Vorys has provided this update to recap which counties conducted full reappraisals and updated values last year. 2/15/2022
Economic Development Incentives Conference in Columbus, Feb. 25
February 18, 2022OMA Connections Partner Vorys will host its annual Economic Development Incentives Conference on Friday, Feb. 25. Details are available here. 2/15/2022
U.S. Trade Deficit Hits Record in 2021
February 11, 2022The U.S. trade deficit widened to near record of $80.7 billion, according to OMA Connections Partner RSM. The bilateral deficit between the U.S. and China was $34.1 billion. For all of 2021, the U.S. trade deficit rose to a record $859.1 billion. RSM predicts that trade policies will be one of the federal government’s main areas of focus this year.
Also, RSM has published its analysis on the latest consumer inflation figures. 2/10/2022
Ohio Tax Receipts Beating FY Forecast by $816M
February 11, 2022After another strong showing in January, Ohio’s Fiscal 2022 tax receipts now stand at 5.5% ($816 million) above estimates, according to the state’s latest monthly financial report. Last month alone, the state collected $2.57 billion in total tax receipts, beating estimates by 10% ($236 million). 2/10/2022