News & Notes May 22, 2014
News: Ohio Senate Approves bill to expand business, income tax cuts, Plain Dealer Notes: This bill will now go to the House for an up or down vote or to conference committee. The different components interact with each other – making the total cost of the bill $402 million. With that money, we could have restored the cuts to our K-12 schools, fund a massive expansion of Pre-K, fund all the social service funding requests, or adequately fund the third grade reading guarantee. Instead, the money will mostly go to the wealthiest Ohioans.
The estimates by the Legislative Services Commission are as follows 1. Business Tax Cut: Costs $290 million. This cut will primarily benefit sole proprietorships like wealthy attorneys or accountants who have a large amount of income from their business on their personal tax returns. Most business owners will not see much of this money. 2. Income Tax Cut: Costs $100 million. Income taxes are based on your ability to pay, and will primarily benefit the wealthiest Ohioans. 3. Personal Exemption: Costs $73 million. The expansion of the personal exemption will primarily go to middle income families. 4. EITC: Costs $17 million. Expanding the EITC, but not making it refundable is a wasted opportunity. Many low and middle income families will not be eligible for this because it is not a refundable credit.
It is important to note that these amendments were introduced into an appropriations bill on Tuesday during committee, approved and passed by the full Senate on Wednesday – without any notice that these would be included.