Policy Matters Ohio: Speaker’s #1 priority – Tax cut for the richITEP Work in Action
One of Ohio House Speaker Jason Stephens’ top-priority bills, House Bill 1, is a massive giveaway to the rich, and the first of two such proposals by leading Republicans in Ohio’s House. According to a new analysis by Policy Matters Ohio, HB 1 slashes funding to children and all manner of local services, does nothing for low-income Ohioans, and provides less than $3 dollars in tax savings to many middle-income Ohio families.
An examination of the flat-tax proposal by ITEP estimates a cost of more than $2 billion per year. Part of this burden will be shifted onto schools and local authorities by doing away with the state-funded 10% property tax rollback.
The ITEP analysis found that 89% of the value of the tax cut will go to the richest 20% of households (those making more than $124,000 per year) and 35% will benefit the richest 1% of households (those that make more than $617,000), which will receive an average tax cut of more than $11,000. Meanwhile, the bottom half of Ohio households will receive nothing or very near nothing.