The Ohio Legislative Service Commission indicates that "as much as $450 million a year of those business tax cuts are benefiting a wealthy slice of wage earners who represent only 0.5 percent of the state workforce and just 5 percent of those claiming the deduction." ... See MoreSee Less
“Medicaid expansion — Gov. John Kasich’s largest response to the opioid crisis — has provided mental health and addiction services to more than 500,000 adults who gained health coverage, according to state data. Most were previously uninsured, and a recent Ohio State University study found that 95 percent of those on the expansion have no other insurance options.” ... See MoreSee Less
Early childhood education promotes long-term success and narrows the achievement gap between low-income students and their more affluent classmates. But it's not a priority in the Senate's budget. ... See MoreSee Less
The Ohio budget allocates about $35 billion dollars through the ‘General Revenue Fund’ (GRF) each year toward our schools, roads, public safety, and public health. We all benefit from these smart public investments. The budget is often the most important piece of legislation passed, because it establishes the resources and priorities for the state.
Is Ohio’s tax system fair?
Everyone pays something. The state has income and sales tax and local communities have property taxes. When all state and local taxes are taken together the wealthiest Ohioans pay about 6% of their income toward state and local taxes and the poorest Ohioans pay about 12%. This is because sales and property taxes are ‘regressive’ – they are a set rate not based on income. As we cut state income tax, the public sector relies on sales and property taxes more.
How do Ohio’s taxes compare to other states?
It is difficult to compare state taxes, because each state has a different structure. The average Ohioan pays a comparable amount of state and local taxes as individuals in other states. Most states are within 1% of each other for the total tax load for the average citizen. Instead of comparing our tax system, we should compare the outcomes – poverty, economic growth, poverty, hunger, high school graduation rates, etc.
How do taxes impact the economy?
At a state level, there is very little impact from state tax policy on the economy. Research has found little to no truth behind the claim that tax cuts will grow the economy or increase state revenue. People are not going to leave Ohio if tax rates on the wealthiest Ohioans go up. What is the impact of tax cuts on the economy? They mean less revenue to invest in our schools, bridges, and public health systems. That means fewer teachers, fire fighters, and construction workers.
What should we do to improve Ohio’s tax system?
Ohio should make sure that the wealthiest Ohioans and corporations pay their fair share so that we have enough revenue to invest in great public services that strengthen our communities. By restoring recent tax cuts, Ohio could have billions of dollars to invest to reduce college tuition, rebuild crumbling infrastructure, and make it a bit easier for families struggling to get by.
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