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Economy and Business

Study says Kasich's tax shift is really a tax hike aimed at poor people and the middle class
A liberal think tank says the top 1 percent will get a $10,000 windfall; Ohio's GOP chairman accuses Democrats of "class warfare"

Bill Cohen
In The Region:
Gov. John Kasich has been touting a massive tax reform plan this week. He’s labeling it an overall $1.4 billion net tax cut. But critics are now highlighting a study that contends nearly half of all Ohio taxpayers could wind up paying more. Statehouse correspondent Bill Cohen reports.
Study says Kasich's tax shift is really tax hike

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Study says Kasich's tax shift is really tax hike

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“This will give to the rich and take away from the poor.”

That’s how Zach Schiller of the Liberal think tank PolicyMatters Ohio portrays the governor's tax shift plan.  It would slash the graduated state income tax for families by 20 percent  and for small business by 50 percent.

 At the same time, it would apply a 5 percent sales tax to a long list services that are now tax-free.

 A PolicyMatters study concludes the average net tax cut for the top 1 percent of income earners would be more than $10,000. The next highest 4 percent of earners would get a tax cut of more than $1,500.

But the bottom 20 percent of taxpayers would pay an increase averaging $63.

Ohio’s Republican Party Chief Bob Bennett calls the criticism "class warfare by Democrats."  A tax department official calls the study "advocacy research that's not solid."  But the agency has issued no counter-study to refute the claims in the study.

Gov. Kasich's press secretary says people should focus on this instead: a huge tax cut for small companies will boost jobs.    

Listener Comments:

If you look at history, especially at the federal level, you will see that tax cuts for the wealthy do not create jobs. This is class warfare, no doubt about it, but aimed directly at the lower and middle classes who are already struggling just to survive.

Posted by: Carolyn (Athens) on February 13, 2013 9:02AM
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