Kasich offers election year tax cut of $21 per Ohioan
Yet more details are emerging about John Kasich’s planned income tax cut, To be funded by additional revenue collections on oil and gas drillers. Revenue from fracking, after setting aside a portion for oversight by the Department of Natural Resources, would be deposited into a special fund that, when it reached a certain threshold amount, would trigger an across the board income tax cut, most likely in 2014 – the year Kasich is up for reelection. According to administration projections, provided to the Dispatch:
the tax cut in 2014 would be about 1.6 percent.
What does that work out to, for the average earner? As we pointed out in our earlier analysis, an Ohio taxpayer earning the median income of $47,358 pays $1,346 in state income tax. That means the 2014 taxes for the average Ohioans would be reduced by $21, or 40 cents per weekly paycheck. I don’t know about you, but that much won’t even buy me a copy of the Dispatch, let alone make a dent in my weekly expenses, so it seems a rather empty gesture as far as election year gimmicks go.
Perhaps preparing for criticism that the amount would be miniscule for ordinary Ohioans, the report clarifies:
The reduction would be the same percentage for all tax brackets, but in terms of actual dollars, it would benefit the wealthy and small businesses more because they pay more in income taxes.
Which seems a rather odd defense, that it will help the wealthy and businesses more than the rest of us. For an election year gimmick, this seems mis-targeted. I think we can all assume that the wealthy and small business community (as represented by the local Chambers and ultra-conservative NFIB) were already on Kasich’s side.
Details of the proposal are expected to be included in the Mid-Biennium Review (MBR) budget legislation, expected to be introduced early next week. Hearings will start Wednesday in the House Finance Committee. As they prepare to consider this proposal, Ohioans might want to contact their House member and let them know what an annual tax cut of $21 would mean to them.