- Vivek Ramaswamy plans to eliminate Ohio state income tax to drive high-paying job growth and population increases.
- The proposal starts with repealing capital gains taxes in twenty twenty-seven, primarily benefiting high earners initially.
- Ramaswamy intends to cut Medicaid waste to offset the estimated ten point four billion dollar annual revenue loss.
Vivek Ramaswamy is making a zero Ohio state income tax the centerpiece of his Ohio governor campaign, promising that lower taxes and expanded training will bring high-paying job growth to the state. He outlined the pitch on July 29, 2026, while describing his broader priorities as lower costs, larger paychecks and better schools.
“Top three things I want to do, lower costs, bigger paychecks, better schools,” Ramaswamy said. He called bringing high-paying jobs back to Ohio “in droves” the “number one step” and linked that goal to workforce and trades-based education.
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The Republican nominee said he would eventually eliminate Ohio’s income tax. He argued that Ohio is losing residents to Texas, Florida and Tennessee, which do not impose a state income tax.
The plan starts with capital gains. Ramaswamy said on July 14 that eliminating the tax on capital gains would be “the first step” toward a broader repeal, with the change taking effect in 2027.
“That will be the first step of a longer-run path at least over the next ten years or sooner to get to zero income tax.”
Ramaswamy made that statement at an Ohio Chamber of Commerce event. He also described the initial capital-gains cut as “achievable in 2027,” while saying economic growth and investment would begin in 2027.
The first cut would reach wealthier taxpayers first
Ohio’s personal income tax generates approximately $10.4 billion annually, or roughly 21% of the state’s General Revenue Fund. Another estimate cited for the income tax and capital-gains tax together placed annual revenue at $10.4 billion to $10.5 billion.
The capital-gains proposal would distribute its benefits unevenly, according to legislative analysis cited in the research. Ohioans earning over $1 million a year would receive 55.6% of the benefit, while people earning under $100,000 a year would receive 7.3%.
About 15,000 Ohio residents earning more than $1 million annually would be in the first group. Households earning below $100,000 account for two-thirds of Ohio and would receive the smaller share of the benefit.
Ramaswamy has paired the tax cuts with property-tax reductions and broader cost-cutting. His 10-point plan also calls for prosecuting Medicaid fraud as a way to help finance the income-tax repeal.
Ramaswamy points to Medicaid spending for savings
Ramaswamy claims Ohio’s Medicaid budget grew from $27 billion to $47 billion over the last decade even though enrollment stayed flat. He estimates that 10%, or $4.7 billion, represents “waste, fraud, and abuse.”
Critics say removing about $10 billion in annual revenue without a replacement would force cuts to Medicaid and public schools. Medicaid serves 3 million Ohioans, while an Innovation Ohio analysis said eliminating the income tax would create a gap equal to nearly one-quarter of the state’s operating revenue.
The same analysis estimated that cutting a proportional amount from schools would reduce K-12 state aid by roughly $2.4 billion.
Ramaswamy has also faced questions about higher education. He initially drew criticism after suggesting that “subpar” public universities, including Cleveland State and Kent State, could close to reduce costs. On July 28, he said he meant consolidating duplicative programs rather than shutting entire institutions.
The education pitch reaches beyond tax policy
Ramaswamy says Ohio can use workforce training and trades education to connect residents with better-paying employment. His campaign message places schools alongside taxes and business policy, rather than presenting the income-tax repeal as a standalone budget measure.
He has set a population target of 15 million people by the end of a potential governorship, up from approximately 11.8 million. The campaign presents business attraction, investment and job creation as the mechanisms for reaching that goal.
Ohio moved to a 2.75% flat tax for income over $26,050 on January 1, 2026, under legislation signed by outgoing Gov. Mike DeWine. Ramaswamy’s proposal would eliminate that tax entirely over time.
His running mate is Ohio Senate President Rob McColley, a Republican from Napoleon. Democratic nominee Dr. Amy Acton is running with David Pepper, a former chairman of the Ohio Democratic Party.
Business backing arrives as the race tightens
The Ohio Chamber of Commerce PAC endorsed Ramaswamy on July 14, citing his commitment to lowering the cost of doing business. The Ohio Fraternal Order of Police endorsed him on July 22.
The Cook Political Report shifted the race to a toss-up in July. Jessica Taylor, an editor at the organization, said Republicans she spoke with were not optimistic about Ramaswamy and viewed the contest as very tight.
“This was the wrong guy to roll the dice with,” Taylor said.
The race pits Ramaswamy against Acton as both parties compete for a state that has become central to the 2026 governor’s contest. Polling remained deadlocked as of July 30, 2026.
Ramaswamy has self-funded his campaign with approximately $25 million to $50 million. The super PAC V PAC: Victims Not Victors received a $5 million donation from Elon Musk in July 2026.
His proposed timeline begins with the capital-gains repeal in 2027 and extends toward a full income-tax repeal over the next ten years or sooner. The campaign’s stated population target would require Ohio to grow from approximately 11.8 million to 15 million people during a potential term.
