The budget introduced by the House majority would create more tax cuts for
\nthe wealthy, and temporary tax increases for some middle-class households.<\/p>\n
The full benefit of the proposed tax cut is only available to households
\nwith incomes upwards of $98,600, putting them roughly in the top third of
\nOhio in terms of income. Because the bill suspends inflation adjustments to
\noffset the cost of the cuts for the next two years, some middle-income
\nhouseholds will end up paying more during that time.<\/p>\n
By itself, the removal of one tax bracket and reduction in rates called for
\nin the bill would provide permanent tax cuts (starting in 2023) of $238 to
\nthe vast majority of those making more than $100,000, but zero to anyone
\nwith income under $28,000. That permanent tax cut would cost more than $400
\nmillion a year over the long term, according to the Legislative Service
\nCommission. This is not the flat tax of House Bill 1 but the people of Ohio
\ndeserve better than a \u201cless bad\u201d tax plan.<\/p>\n
The suspension of inflation indexing for tax brackets and exemptions leads
\nto tax increases for all tax-paying households. For wealthy households,
\nthese increases do not outweigh the cuts. But, in the case of many
\nmiddle-income households, they do, leading to small net tax increases.<\/p>\n
According to new estimates provided by the Institute on Taxation and
\nEconomic Policy (ITEP)\u2014a nonprofit with a sophisticated model of state
\nand local taxation:<\/p>\n
* More than half the value of the tax cut (50.7 percent) benefits the wealthiest
\n20 percent of Ohio households (who make more than $124,000 per year).
\n* Only about 5.3 percent of the value of the cut will go to the bottom 60 percent of
\nOhio households.
\n* On average, people making between $23,000 and $75,000 per year will see
\na small temporary tax increase.<\/p>\n","protected":false},"excerpt":{"rendered":"
The budget introduced by the House majority would create more tax cuts for the wealthy, and temporary tax increases for some middle-class households. The full benefit of the proposed tax cut is only available to households with incomes upwards of $98,600, putting them roughly in the top third of Ohio in terms of income. Because […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"wf_post_folders":[172],"class_list":["post-8111","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/wordpress.thetruthtoledo.com\/index.php\/wp-json\/wp\/v2\/posts\/8111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wordpress.thetruthtoledo.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wordpress.thetruthtoledo.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wordpress.thetruthtoledo.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/wordpress.thetruthtoledo.com\/index.php\/wp-json\/wp\/v2\/comments?post=8111"}],"version-history":[{"count":1,"href":"https:\/\/wordpress.thetruthtoledo.com\/index.php\/wp-json\/wp\/v2\/posts\/8111\/revisions"}],"predecessor-version":[{"id":8112,"href":"https:\/\/wordpress.thetruthtoledo.com\/index.php\/wp-json\/wp\/v2\/posts\/8111\/revisions\/8112"}],"wp:attachment":[{"href":"https:\/\/wordpress.thetruthtoledo.com\/index.php\/wp-json\/wp\/v2\/media?parent=8111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wordpress.thetruthtoledo.com\/index.php\/wp-json\/wp\/v2\/categories?post=8111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wordpress.thetruthtoledo.com\/index.php\/wp-json\/wp\/v2\/tags?post=8111"},{"taxonomy":"wf_post_folders","embeddable":true,"href":"https:\/\/wordpress.thetruthtoledo.com\/index.php\/wp-json\/wp\/v2\/wf_post_folders?post=8111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}