The aesculus glabra is a tree species that contains a poisonous fruit that Native Americans would call “hetuck,” meaning eye-of-the-buck due to its resemblance to a buck’s eyes. The tree was eventually termed an Ohio Buckeye and is the state tree. In this week’s blog we focus on the Midwest state of Ohio.
Ohio has the seventh largest state economy in the nation, based upon their 2013 GDP of $565 billion. The state’s success is a result their two leading industries; manufacturing and exporting.
Manufacturing is the state’s largest of twenty sectors, which accounts for $99.8 billion or 17.7% of the GDP. Ohio contributes 4.4% of America’s total manufacturing output, making them the 4th highest behind California, Texas, and Illinois. This sector currently employs over 673,000 people. Ohio leads the nation in production of plastics, rubber, fabricated metals, electrical equipment, and appliances.
The state has become the 9th largest exporting state in the nation due to its extensive railroad network, five international airports, and eight interstate highways. Ohio is geographically located within 600 miles of more than half of the U.S. and Canadian populations. In 2013, Ohio’s top exported commodity was machinery ($9.3 billion). Other top export commodities include vehicles, aircraft, electrical machinery, plastics, and optics. In 2012, over 16,000 companies exported from Ohio.
Ohio is rated unfavorably on the 2014 State Business Tax Climate Index ranking at 39 out of 50. Their individual income tax (44th) and sales tax (30th) ranked poorly in comparison to other states. Governor John Kasich has tried to relieve the burden since taking office by creating tax reductions and reforms that reduced personal income taxes, created a new Earned Income Tax Credit, cut small business taxes in half and eliminated the death tax. Continue reading