Taft Address a Prelude to Budget Brouhaha Over State Taxes, Spending; Consolidation Planned for State Regulatory Agencies
Gongwer News Service - February 4, 2005
Gongwer News Service
Policy Matters Ohio, a Cleveland-based research group with a focus on issues affecting low- and middle-income citizens, released a study this week noting that a 22% across-the-board cut in the personal income tax would equate to $2 billion a year in lost revenue for the state. The group also said the effects of the cut, which is expected to be offset at least partly through higher sales taxes, would disproportionately favor the rich.
“The 1% of Ohio taxpayers who make at least $274,000 a year with an average income of $643,000 would save an average $8,464 a year if such a change were implemented,” Policy Matters Ohio reported. “This group would receive 23% of all the tax savings – more than half again as much as the total amount received by the bottom 60% of Ohio taxpayers, who each make less than $43,400 a year.”