Jim Siegel’s story from the Columbus Dispatch was picked up by the Norwalk Reflector. The piece used our research as the foundation for a critical look at the latest iteration of the tax plan in the state budget.
A new analysis yesterday added fuel to criticism of a new tax plan that would decrease Ohioans’ income tax but increase the state sales and commercial activities taxes.
A study for Policy Matters Ohio by the Institute on Taxation and Economic Policy found that middle-class Ohioans, who made between $33,000 and $51,000 last year, would get a net annual tax cut of $5 if the plan as proposed is implemented. The bottom 40 percent of Ohioans, whose annual income is below $33,000, would see a net tax increase averaging $24 a year, the labor-backed group said.
The labor-backed group said that Ohio residents who make the top 1 percent of income, at least $335,000 in 2012, would reap an average annual tax cut of $6,083, the group said.
The analysis was based on the plan proposed last week. Some changes to the tax package approved yesterday could have some impact on low-income Ohioans, such as keeping the $20 personal credit for those earning less than $30,000.
Siegel noted that Republicans touted the plan as an advance, while Democrats called it regressive. He also included a thorough summary about Ohio’s tax system and the proposed changes, included here verbatim:
Income taxes
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