Top 1% of earners fare best in proposed Ohio tax plan, study says
Posted June 26, 2013 in Press Releases
Jim Siegel's story from the Columbus Dispatch was picked up by the Norwalk Reflector. The piece used our research as the foundation for a critical look at the latest iteration of the tax plan in the state budget.
A new analysis yesterday added fuel to criticism of a new tax plan that would decrease Ohioans’ income tax but increase the state sales and commercial activities taxes.
A study for Policy Matters Ohio by the Institute on Taxation and Economic Policy found that middle-class Ohioans, who made between $33,000 and $51,000 last year, would get a net annual tax cut of $5 if the plan as proposed is implemented. The bottom 40 percent of Ohioans, whose annual income is below $33,000, would see a net tax increase averaging $24 a year, the labor-backed group said.
The labor-backed group said that Ohio residents who make the top 1 percent of income, at least $335,000 in 2012, would reap an average annual tax cut of $6,083, the group said.
The analysis was based on the plan proposed last week. Some changes to the tax package approved yesterday could have some impact on low-income Ohioans, such as keeping the $20 personal credit for those earning less than $30,000.
Siegel noted that Republicans touted the plan as an advance, while Democrats called it regressive. He also included a thorough summary about Ohio's tax system and the proposed changes, included here verbatim: