Policy Matters Ohio: Ohio Tax Shift Away From the Wealthy: The Pattern Repeats
ITEP Work in ActionThe main tax measures in Ohio’s new budget bills will bring tax increases on average for lower- and middle-income taxpayers, while those at the top of the income scale on average will see cuts. Overall, the bottom 95% of taxpayers with annual income below $208,000 a year will average increases, while those in the top 5% who make more than that will see cuts. For many Ohioans, the combined effect of a higher gas tax and required collection of sales tax by out-of-state online retailers will more than offset income-tax cuts the General Assembly has approved this year.
Those are the main conclusions of an analysis by the Institute on Taxation and Economic Policy (ITEP), a Washington, D.C. nonprofit with a sophisticated model of the tax system.