February 10, 2015

Policy Matters Ohio: Kasich tax proposal would skew tax system further in favor of Ohio’s affluent

ITEP Work in Action

The Kasich administration proposal to cut income taxes and expand sales and other taxes would produce big tax cuts for Ohio’s most affluent residents, while increasing taxes on lower- and moderate-income families.

The proposal would provide an $11,906 annual tax cut on average to taxpayers in the top 1 percent of the income spectrum, who made more than $388,000 in 2014. The bottom three-fifths of taxpayers as a group, making less than $58,000 a year, would see increases in state and local taxes. Those in the bottom fifth, making less than $20,000 last year, would see an increase of $116 on average. Even excluding changes in tobacco taxes in Gov. Kasich’s proposal, taxpayers making less than $37,000 a year – those in the bottom two-fifths of the income spectrum – on average would see no benefit from the plan.

Read the full report here.