Wealthiest Ohioans Gain Most From Proposed Tax Changes; Low- and Middle-Income Families, on Average, Save Little or Nothing
March 7, 2005
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.
February 2005 report: State Income-Tax Cut Would be Expensive, Unequal and Would Siphon Money Out of Ohio
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