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Analysis by Policy Matters says the rich are making out in Ohio's budget
Left-leaning think tank says its a matter of $4 cut compared to $1,800 

A new Policy Matters Ohio report says the tax cuts overwhelmingly benefited the wealthiest.
Courtesy of Policy Matters Ohio
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Ohio had an $800 million surplus when its fiscal year closed Monday. And Gov. John Kasich has been touting $400 million in tax cuts in the latest mid-term budget. But as WYSO’s Lewis Wallace reports for Ohio Public Radio, not everyone’s happy with those cuts.

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The left-leaning think tank Policy Matters Ohio finds most of the benefits of the latest round of tax cuts will go to wealthy Ohioans. According to estimates based on a model, the poorest 20 percent of Ohioans will see an average tax cut of $4 per year, while the richest residents could see upwards of $1,800 a year.

Zach Schiller directs research at Policy Matters.

“I think that what we’re seeing here is a further shift in an already regressive tax system, where the people who can afford to pay are in fact benefitting the most from tax cuts. The people who are having a harder time getting along are getting very little out of it.”

A report out this week finds that’s largely because of an expansion of an income-tax deduction for business income, much of which goes to investors and part-owners. Of the estimated $400 million dollars of tax savings in this year’s budget, Policy Matters finds 50 percent of that will go to people with incomes in the top 5 percent.


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