Search
  • Nick Bates

Major Changes Proposed to Ohio’s Budget


MBR tax cuts

The Mid-Biennium Review (MBR) contains three tax cut proposals. The first tax cut targeted at low income people is an expansion of the Earned Income Tax Credit (EITC). The second proposal is an expansion of the personal exemption for people making less than $80,000 a year (middle income). Finally, the most expensive proposal is a phased in 8.5% cut to personal income tax rates which benefits the wealthiest Ohioans the most.

EITC: Total $94.2 million Fiscal year 2015: $29.9 million Fiscal year 2016: $31.4 million Fiscal year 2017: $32.9 million*

Personal Exemption Expansion: Total $426 million Fiscal year 2015: $142 million Fiscal year 2016: $142 million Fiscal year 2017: $142 million

Personal Income Tax Cut: Total $2.186 Billion Fiscal year 2015: $461 million Fiscal year 2016: $816 million Fiscal year 2017: $909 million

All data from the Legislative Services Commission analysis of the MBR (HB 472) *LSC did not provide a 2017 estimate of the cost of the EITC so this is an estimate.

**There is overlap in the EITC and the personal exemption credit. Without refundability of these credits, there will be less benefit to low and middle income individuals than might be inferred by combining the numbers above. If both the personal exemption and EITC are implemented, the anticipated cost is $453 million over three years.

0 views0 comments

Recent Posts

See All

I love data. I love numbers. I love debates about the LGF, PLF, TPP, and revenue sharing. I love local share debates around school funding formulas and of course Medicaid group 8. Sadly, nobody else s

The New York Times reported recently that President Donald Trump paid only $750 in federal income taxes in 2016 and in 2017. How is this possible for a person who is allegedly making a lot of money? S