Report Says Most Ohioans Won't See Much Money From Senate Budget Tax Cut
The proposed budget from Republican leaders in the Ohio Senate includes a 5% income tax cut estimated to cost the state $874 million over two years. But a new analysis of that tax cut says most Ohioans won’t even notice the change.
The analysis from the progressive-leaning think tank Policy Matters Ohio says three-quarters of the tax cut would go to the highest-wealth Ohioans.
Three-fifths of Ohio's taxpayers make less than $64,000 a year. Policy Matters' analysis says those taxpayers will get 7% of the income tax cut.
Once the tax cut would be fully instituted, people making an average of $52,000 a year get an average of $22 back. Those in the next highest bracket, making an average of $82,000 yearly, get back an average of $59. Those in the top 1%, who make an average of $1.3 million a year, would get an average break of $1,712.
Researcher Zach Schiller noted there are cuts in spending in other programs to pay the $874 million that this income tax break will cost.
“To throw away this kind of money on a tax cut that’s going to go mostly to the affluent is, it’s really shocking," Schiller said.
Senate leaders said the budget includes $1.3 billion in tax cuts, which they say encourages people to go to work, and will give businesses more money to pay employees. Schiller said with dollar figures from the tax cut that low, those arguments are ridiculous.