News
News Home
Quick Bites
Exploradio
News Archive
News Channel
Special Features
NPR
nowplaying
On AirNewsClassical
Loading...
  
School Closings
WKSU Support
Funding for WKSU is made possible in part through support from the following businesses and organizations.

Area Agency on Aging 10B, Inc.

Akron Children's Hospital

Hennes Paynter Communications


For more information on how your company or organization can support WKSU, download the WKSU Media Kit.

(WKSU Media Kit PDF icon )


Donate Your Vehicle to WKSU

Programs Schedule Make A Pledge Member BenefitsFAQ/HelpContact Us
Government and Politics


Liberal Ohio think tank says tax breaks have benefited the rich and corporate
Policy Matters says the poor's taxes have actually gone up since 2005
by WKSU's STATEHOUSE CORRESPONDENT JO INGLES


Reporter
Jo Ingles
 
Policy Matters Ohio says that Ohio's current tax policies benefit the rich over the poor.
Courtesy of Policy Matters Ohio
Download (WKSU Only)
In The Region:

Ohio lawmakers began income tax cuts back in 2005 and they have continued to cut those same taxes even in recent years. But sales taxes have increased.

A liberal leaning think tank has taken a look at how the tax shifts since 2005 have affected Ohioans. Zach Schiller of Policy Matters explains the tax changes have had a disproportionately positive effect on wealthier Ohioans.

LISTEN: SCHILLER ON TAXES

Other options:
Windows Media / MP3 Download (3:03)


“When you look at the major tax changes over that time period, the top 1 percent of people, the most affluent Ohioans, got a tax cut that amounts to about $20,000 a year while the people on the bottom three-fifths, taken as a group, saw an increase," Schiller says.

Schiller says people on the other side would say the people on the bottom did not see an increase because they've gotten tax credits and other incentives during that time. But he says when Policy Matters looked at the data, it did not add up.

Who benefitted?
"[Our analysis] includes for example, the tax credit that was passed under (Gov.) Bob Taft in 2005 as well as the more recent institution of an earned income tax credit and what you find is that while those certainly did reduce taxes for lower income Ohioans, the fact is that low income people pay most of their state and local taxes in state, excise and property taxes," Schiller says.

"We have a progressive income tax, so when you cut the income tax across the board, most of it goes to affluent people, and it doesn’t do a whole lot for people who don’t make much. In fact, there is a modest cut in income taxes even for the lowest income Ohioans but it is more than overwhelmed by the other tax changes like the increase in the sales tax.”

The elimination of Ohio’s corporate franchise tax mostly helped the rich, Schiller says.

"The corporate franchise tax was the name for [Ohio's] corporate income tax," Schiller says. "We are now one of six states in the country that does not have a corporate income tax. The corporate income tax was paid more by affluent people so when you cut it, you are helping to reduce their taxes.

"But in the end, what we did is cut taxes pretty significantly. All of these things together wound up being a $3 billion a year tax cut and people on the bottom end, as a group, did not do so well."

So did Ohio get more jobs?
The theory behind cutting these taxes was that it would entice more businesses to come to Ohio and that would create more jobs. Schiller says that is not happening.

"Between June 2005 and just last month, Ohio lost a total of 126,000 jobs or 2.3 percent of the total," Schiller says. "During that time period, the country as a whole gained more than 5 million jobs or 3.8 percent. So here, over that time period, Ohio actually saw a loss and over the most recent year, we have also seen comparatively small job growth in Ohio. So I don’t think you can make a convincing case that the tax cuts have allowed Ohio to out perform the country.”

Most Ohio lawmakers who support the tax reform say they realize Ohio is not out of the woods yet but they believe those policies need more time to work. 

In a recent statement, Gov. Kasich’s spokeswoman, Connie Wehrkamp, said the jobs-friendly policies championed by Kasich are working, evidenced by the fact that Ohioans have created 250,000 private sector jobs since he took office after losing 350,000 under the previous administration.

Add Your Comment
Name:

Location:

E-mail: (not published, only used to contact you about your comment)


Comments:




 
Page Options

Print this page

E-Mail this page / Send mp3

Share on Facebook




Stories with Recent Comments

Terry Pluto: U of A's new athletic director has the toughest job in town
It is a hard sell. The Students do not want to go to the football games and they do not want to pay for the program. They have a lot of student loan debt and t...

Akron considering the future of the B.F. Goodrich smokestacks
This BFGoodrich alumna says, "Thank you, Dave Lieberth!"

State creates panel to look at Ohio charter school sponsors
It is more than disturbing that charter schools, which seemed like a good idea years ago, have begun to cripple public school education.

DEVO mural in Akron is now on display downtown
The installation is not at the former site of Chili Dog Mac. CDM was one block north on the other side of Main St.

New report shows growth in white collar jobs for Northeast Ohio
Unfortunately, there are fewer jobs in comparison to the number of professionals applying for them. I have been had a full time job since June 2012. In order to...

Advocacy group: Ohio could lead in clean energy
Ohio Legislators, You are supposed to be our leaders but you're not taking us where we want to go - where we need to go!

Campaign for and against marijuana legalization begins
Cannabis legalization needs to happen as soon as possible! But not if it gives monopolies to a selected few to grow and sell the herb. Responsible Ohio's mono...

Heinen's in downtown Cleveland sponsors a contest for food entrepreneurs
Love that this took place right here! What a way to support local. Thank you Heinens! Love this quote, as a small local biz, I agree, it's big!! "To be a small...

Pluto: How the Indians' blockbuster deal went bust
Terry, As a long time reader of yours I am generally on the same page - and we're also about the same age. Anyway, like many, I am dismayed at the greedy and en...

Copyright © 2015 WKSU Public Radio, All Rights Reserved.

 
In Partnership With:

NPR PRI Kent State University

listen in windows media format listen in realplayer format Car Talk Hosts: Tom & Ray Magliozzi Fresh Air Host: Terry Gross A Service of Kent State University 89.7 WKSU | NPR.Classical.Other smart stuff. NPR Senior Correspondent: Noah Adams Living on Earth Host: Steve Curwood 89.7 WKSU | NPR.Classical.Other smart stuff. A Service of Kent State University