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Wealthiest Ohioans Gain Most From Proposed Tax Changes; Low- and Middle-Income Families, on Average, Save Little or Nothing
An analysis of many elements of Governor Bob Taft’s tax proposal reveals that the proposal would provide large tax cuts to the wealthiest Ohioans, while providing little or no savings for low-income Ohioans – and would shift the cost of funding of public services away from the wealthiest forty percent of Ohioans and to the bottom sixty percent of Ohio taxpayers (who earn up to $43,000 a year). When the proposal is fully phased in, the top one percent of taxpayers on average would see a $7,076 reduction in their taxes, a tax break that amounts to 1.1 percent of their $643,000 average income. In contrast, the lowest 20 percent of taxpayers, with annual incomes under $16,000, would see an overall tax increase of $63 on average. The second 20 percent, with incomes up to $28,000, would see an overall tax increase of $68 on average, and the middle 20 percent, with incomes up to $43,000, would see an overall tax increase of $12 on average.
Click the link below to access the press release containing the report.
Read our February 2005 report: State Income-Tax Cut Would be Expensive, Unequal and Would Siphon Money Out of Ohio
Click on the link below to access our January 2005 release, analyzing the impact of cutting Ohio's top income-tax rates. Cutting Ohio Top Income-Tax Rates Would be Costly, Favor a Few
Click here to read about Policy Matters Research Analyst Jon Honeck's testimony before Ohio House and Senate Committees, on Governor Bob Taft's tax reform proposal.
Read our Fact File: The Taft Plan for Income Tax Cuts is Not Good for Ohio
3/7/2005 |