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Report Says Most Ohioans Won't See Much Money From Senate Budget Tax Cut

The Ohio Statehouse, as seen from the Huntington Building on High Street.
Karen Kasler
Statehouse News Bureau
Lawmakers at the Ohio Statehouse in Columbus, seen here from the Huntington Building on High Street, are considering the Senate's version of the proposed two-year budget. The budget includes an income tax cut that Policy Matters Ohio says would mostly benefit the richest people in the state.

The proposed budget from Republican leaders in the Ohio Senate includes a 5% income tax cut estimated to cost the state $874 million over two years. But a new analysis of that tax cut says most Ohioans won’t even notice the change.

The analysis from the progressive-leaning think tank Policy Matters Ohio says three-quarters of the tax cut would go to the highest-wealth Ohioans.

Three-fifths of Ohio's taxpayers make less than $64,000 a year. Policy Matters' analysis says those taxpayers will get 7% of the income tax cut.

Once the tax cut would be fully instituted, people making an average of $52,000 a year get an average of $22 back. Those in the next highest bracket, making an average of $82,000 yearly, get back an average of $59. Those in the top 1%, who make an average of $1.3 million a year, would get an average break of $1,712.

Policy Matters Ohio
Policy Matters Ohio
According to a Policy Matters Ohio analysis, 75% of the proposed income tax cut would go to Ohioans who are the wealthiest.

Researcher Zach Schiller noted there are cuts in spending in other programs to pay the $874 million that this income tax break will cost.

“To throw away this kind of money on a tax cut that’s going to go mostly to the affluent is, it’s really shocking," Schiller said.

Senate leaders said the budget includes $1.3 billion in tax cuts, which they say encourages people to go to work, and will give businesses more money to pay employees. Schiller said with dollar figures from the tax cut that low, those arguments are ridiculous.
Copyright 2021 The Statehouse News Bureau. To see more, visit The Statehouse News Bureau.

Karen Kasler
Contact Karen at 614/578-6375 or at kkasler@statehousenews.org.