An Analysis of the Proposed Ohio Capital Gains Tax Cut
July 18, 2006
The Ways and Means Committee of the Ohio House of Representatives has begun hearings on House Bill 626, which proposes a new set of income tax cuts, this time to the rates on capital gains. Policy Matters Ohio and The Center for Community Solutions requested that the Institute on Taxation and Economic Policy (ITEP) analyze the proposed reductions. ITEP found that three quarters of the proposed tax cuts in the first three years would go to the wealthiest one percent of Ohioans. The plan would likely cost the state thousands of jobs, ITEP said, because a large share of the tax cuts would be diverted out of state, including almost a fifth that would be sent directly to the federal government in higher federal income taxes.