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.