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How The Pandemic's Work-From-Home Trend Could Take A Bite Out Of City Budgets

downtown cincinnati
Ronny Salerno
/
WVXU

You see it come out of every paycheck — that small deduction for local income taxes. But where that money goes could change soon, and that might have big implications for budgets in cities like Cincinnati.

The Ohio General Assembly tucked a provision into the state budget this year that would send local income taxes for employees working at home to the municipality where they live, not the one where their employer is located. Many cities rely on those earnings taxes for a large portion of the cost of fire and police services and other core services, and some could lose or win big under the change.

Conservative groups pushing for that shift have cheered the move. But some tax policy experts and advocacy groups for cities say it's a bad idea — especially since state lawmakers have slashed other funding sources for cities in recent years.

Joining Cincinnati Edition to talk about where stay at home workers should pay income taxes are Greater Ohio Policy Center Executive Director Alison Goebel; Ohio Mayors Alliance Executive Director Keary McCarthy; and Buckeye Institute Senior Litigator Jay Carson.

Listen to Cincinnati Edition live at noon M-F. Audio for this segment will be uploaded after 4 p.m. ET.

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