Tax and Finance Management

Consumer Prices Rise More Than Expected

U.S. consumers paid more for goods and services in December than economists expected, according to the latest consumer price index report. So-called core CPI — consumer prices excluding volatile food and energy prices — rose 3.9% from December 2022 to December 2023.

National Association of Manufacturers Chief Economist Chad Moutray said the Federal Reserve is likely to hold interest rates steady at its meeting this month, but could start cutting them as soon as March.

In its analysis, OMA Connections Partner RSM is predicting top-line inflation will end the year at or below 2.5%. 1/11/2024

2024 Brings Income Tax Relief to Ohio

Several states, including Ohio, are lowering their individual income taxes this year — the result of legislation enacted in 2023. See this article for details.

Under the two-year state budget (House Bill 33), there will be just two Ohio income tax brackets for tax year 2024 (3.5% for income over $100,000, and 2.75% for earnings between $26,050 to $100,000). See this summary by OMA Connections Partner GBQ. 1/4/2024

Webinar: Appealing Real Estate Tax Assessments

On Jan. 25, OMA Connections Partner CliftonLarsonAllen will host a complimentary webinar to discuss when and how to appeal business-related property tax assessments. This event is designed for commercial and industrial property owners/operators. Register here. 1/4/2024

Ohio’s New CAT Rules Take Effect January 1

As a reminder, major changes are coming to Ohio’s Commercial Activity Tax (CAT) beginning Jan. 1, 2024, and again on Jan. 1, 2025.

This one-pager from the Ohio Department of Taxation provides details, as does the agency’s CAT page. Also, OMA Connections Partner Calfee has published this summary.

While the changes bring welcome relief to smaller firms early on, the OMA has cautioned that the new rules will add more uncertainty for Ohio manufacturers of all sizes in future years, especially during the next recession. 12/27/2023

At a Glance: Manufactured Goods and the Trade Deficit

This infographic published by Visual Capitalist illustrates how manufactured goods have fueled the U.S. trade deficit since the early 1990s.

In 2022, the U.S. trade deficit for goods reached $1.31 trillion, with more than $3 trillion in imports offset by $2 trillion in exports. Three decades earlier, the trade deficit for goods was $106 billion. 12/27/2023

State Tax Revenue Continues to Outpace Forecast

According to the latest monthly report from Ohio’s Office of Budget and Management, year-to-date tax collections for the state’s General Revenue Fund were $244.7 million (2.1%) above estimates, as of the end of November.

Personal income tax revenues have fueled the surplus, accounting for two-thirds of the total tax revenue variance. See this infographic.

Meanwhile, Ohio recently landed “AAA” ratings from all three major rating services: S&P Global, Moody’s, and Fitch Ratings. 12/19/2023

Survey: One-Third of Northeast Ohio Manufacturers Open to Selling Business

According to a recent survey of more than 200 Northeast Ohio manufacturing business owners, about one-third are considering or open to selling their business in the next year.

Crain’s Cleveland Business reports the survey was conducted by OMA Connections Partner MAGNET, the region’s Manufacturing Extension Partnership. Ethan Karp, MAGNET’s president and CEO, said many smaller manufacturing companies “can benefit from merging and have a better economy of scale.” 12/20/2023