By the Editorial Board:
Nearly a decade ago, Ohio placed a fateful bet: that big tax cuts, especially for the state’s richest people and corporations, would generate strong job creation, economic growth, and revenue increases. That mostly hasn’t happened.
Columbus’ tax-cut scheme — which costs about $3 billion a year — has forced huge reductions in state spending on essential public services and in aid to local schools and governments. Now a new study, just in time for this year’s elections, shows how the failed tax strategy also has widened economic inequality in Ohio, forcing lower-income taxpayers to subsidize the wealthiest ones.
The progressive advocacy group Policy Matters Ohio commissioned the study by the Institute on Taxation and Economic Policy, a nonpartisan research organization in Washington.