December 17, 2012

Policy Matters Ohio: Income-tax cut would favor affluent; Middle-class Ohioans wouldn’t get enough for a tank of gas

ITEP Work in Action

“Poor and middle-income Ohioans would get little out of Gov. John Kasich’s proposed income-tax cut, while the highest-income Ohioans would see reductions in the thousands of dollars. While House Republicans have sidelined the proposal for now, Rep. Ron Amstutz, chair of the Finance and Appropriations Committee, indicated it will be taken up in the future.[1]

According to an analysis by the Institute on Taxation & Economic Policy (ITEP), a Washington, D.C., based research group with a sophisticated model of the tax system, Ohioans in the top 1 percent of the income spectrum earning at least $321,000 a year on average would receive roughly $2,300 a year in reduced taxes. The middle fifth of Ohio residents, making between $32,000 and $49,000 a year, on average would get about $42 – not enough for a tank of gasoline at today’s prices.”

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