Region 2-B

The Kasich Budget: A Tax Shift Towards More Inequality


Last week, Governor John Kasich released his proposed state budget for 2018-2019. It contains a new tax proposal that will make Ohio's growing income inequality worse.

Our partners at the Institute on Taxation & Economic Policy ran the numbers. Although Kasich administration officials boast about how many people won't pay income tax under the plan, ITEP found it raises taxes for many Ohioans.

The governor's budget reduces state income tax rates and cuts the number of brackets from nine to five. On average, Ohioans who made between $36,000 and $56,000 last year would pay $44 more a year. Those who made less than $21,000 would pay $64 more. The top 1 percent of earners who made more than $457,000 would get an average cut of $2,412.

Kasich pays for most of the cut by increasing the sales tax, broadening the sales tax base to include more services, hiking the tax on cigarettes, increasing the Other Tobacco Products tax and boosting the severance tax.

Policy Matters Research Director Zach Schiller explains it all in our latest report.



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