Poor Ohioans will pay more in taxes under governor’s new plan

Channel 5 - June 27, 2013
   

Channel 5’s Kristin Volk, interviewed Zach Schiller for this piece on the state budget.

While Gov. John Kasich has touted the new state budget as a major tax cut for Ohio residents, NewsChannel5 learned that it’s actually a tax hike for some people.

“Some of the poorest Ohioans will pay more,” said Zach Schiller, research director at Policy Matters Ohio, a non-profit, non-partisan research organization.

The story notes that, for low-income residents, the income tax cut won’t offset the sales tax increase; wealthy Ohioans will benefit,though.

“Richer people tend not to spend all of their income, they may not spend it on things that are taxed under the sales tax,” Schiller said. “So when you raise the sales tax, you’re basically causing lower to middle income people to pay more of their income in sales tax.”

According to Policy Matters Ohio, the government will take an extra $12 a year from an Ohio resident with an annual salary of about $17,000. That’s because that individual will pay about $20 more in sales tax annually, but only earn an extra $8 a year from the state income tax cut.

In contrast, the government will give nearly $1,000 annually to an Ohioan who makes about $200,000 a year. That person will pay about $122 more a year in sales tax, but keep about $1,104 in their paycheck due to the income tax break.

Video online at Poor Ohioans will pay more in taxes under governor’s new plan

 

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