July 7, 2014

The Plain Dealer: Ohio’s tax cuts favor the affluent, do not create jobs

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Like other income-tax cuts, the latest batch favors the wealthiest Ohioans.  An analysis by the Institute on Taxation and Economic Policy, a nonprofit research group with a model of the tax system, found that the top 1 percent of Ohioans, who had incomes of at least $360,000 last year, will receive an average tax cut of $1,846. The middle fifth, who made between $34,000 and $54,000, will see an average tax cut of just $36 (see http://bit.ly/1hliDdB).

Overall, half of the tax cut this year will go to the 5 percent of Ohioans with incomes over $151,000 a year. Though the tax package includes an expansion of the state Earned Income Tax Credit, a positive step, this does little for the poorest Ohioans. The bottom fifth, who make less than $19,000, will get just 1 percent of the tax benefits from the package, or a princely $4, on average.

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