Policy Matters statement: “proud to pay on tax day”
Posted April 11, 2019 in Press Releases
Monday April 15 is the deadline to file state and federal taxes. As Ohioans prepare to pay or to get their refund, Policy Matters Communications Director Caitlin Johnson releases the following statement:
“April 15 should be hailed as a day Ohioans come together to invest in each other. By paying our taxes we’re helping prepare Ohio’s kids for the future in our public schools. We’re supporting public transportation so people can get to work. We’re making sure moms and babies get off to the right start by investing in home visitation programs. We’re supporting a network of public universities that are the envy of the nation. These things build strong communities. We should be proud to work together to support them.
Powerful special interests tilted Ohio’s tax code in their favor. Beginning in 2005, state legislators passed tax cut after tax cut, leaving us with an upside down tax code that exacerbates inequality and brings in $6 billion less a year. Those in the top 1% of earners now pay an average of nearly $41,000 less a year in state taxes. Those in the middle pay about the same. The bottom 20 percent pay an average of $140 more a year. Racism and discrimination make it harder for black and Latino Ohioans to get good-paying jobs. This means families of color are especially harmed by Ohio’s upside-down tax system.
Ohio’s tax code is also full of holes. We have 134 state tax breaks that cost us more than $9 billion a year. Some make sense, but many, like the tax break for buying a timeshare on a private jet, don’t. And some, like the business owner deduction often called the LLC Loophole are deeply damaging. That one loophole costs $1 billion a year with no real benefit.
Encouragingly, the new budget proposed by Governor Mike DeWine does not further cut taxes. But it’s not enough to stop the bleeding. Ohio lags the nation in job creation. The jobs we are adding often pay low wages. College costs too much for most families. We need to raise revenue now. Policy Matters has a plan to raise an additional $2.6 billion a year and create nearly 40,000 new jobs by:
- Restoring the 7.5% income-tax rate on income over $218,250;
- Adding a new 8.5% rate on income over $500,000;
- Repealing the LLC Loophole
- Making our state earned income tax credit (EITC) refundable
Our plan would begin to repair the damage and create an Ohio where everyone can thrive. On Monday, when you submit your taxes, be proud of the important role you’re playing in making Ohio a better state. And think of how much more we can do if we clean up our tax code so everyone pays their fair share.”