As Governor Kasich continues to take credit for new tax cuts this week, several articles over the last few days have examined whether working Ohioans are actually seeing a net tax decrease under Kasich’s policies or if it’s all just smoke and mirrors. If you’re a homeowner, a business owner, or not in the top one percent, the answer is likely disappointing.
New Kasich Income Tax Cut Creates “Only Very Modest Savings” for Middle Class: “An analysis by the Institute on Taxation and Economic Policy, a Washington D.C. nonprofit, showed that the moves designed to help Ohioans beyond the top income brackets – the higher personal exemptions and earned income tax expansion – would generate only very modest savings for middle-income Ohioans and almost nothing for the poorest Ohioans.” [Columbus Dispatch, 5/27/2014]
Much of Income Tax Savings Is Quickly Lost in Higher Property & Local Taxes Due to State Education Cuts: “As a direct result of the $1.8 billion in school funding cuts approved by Gov. Kasich and the Republican-controlled Ohio legislature, local taxpayers have been asked to approve 393 school levies representing $1.34 billion in new operating money since May, 2011. Levies representing $492 million in new operating funds have passed.” [Innovation Ohio, 4/25/13]
Business Owners Forced to Pay More in Taxes Because of State Debt: “As lawmakers put the final touches on another $400 million in tax cuts, the state’s failure to pay off a federal loan to keep jobless benefits flowing has cost Ohio employers more than $423 million. Since 2012, employers have been forced to pay higher federal employment taxes to pay down the state’s debt to the federal government’s trust fund.” [Columbus Dispatch, 5/25/2014]
Those Business Leaders Who Did Save Under Kasich Tax Cuts, Many Didn’t Save Enough to Create Even One Job: “Touted by supporters last year as a way for business owners to add workers and expand their companies, the tax deduction has saved the average filer $730. Most saved less….in the 10 months since the tax cut was approved in June 2013, Ohio gained 42,400 jobs, a 0.8 percent increase. That compares with a 1.4 percent growth rate nationally during that period, and a 1.2 percent increase in Ohio over the previous 10-month period.” [Columbus Dispatch, 5/24/2014]