Monday, October 09, 2006
Middle Class Still Pay More Taxes Under New Flat Tax Plan
This from Policy Matters Ohio
Forty-five percent of Ohioans would end up paying higher taxes while only 30 percent would see taxes lowered, based on an analysis of the details available on gubernatorial candidate Ken Blackwell’s plan for a flat 3.25 percent income tax. Meanwhile, the richest Ohioans would reap thousands of dollars on average in annual tax savings apiece when the plan is fully implemented, and the state would lose more than $800 million a year in revenue. Those were among the findings of an analysis by the Institute on Taxation and Economic Policy (ITEP), a research group in Washington, D.C., with a sophisticated model of the state and national tax systems. Policy Matters Ohio released the report, updating an earlier one. It analyzes a flat tax that would allow those making $20,000 or less a year after exemptions to pay no state income tax.
Forty-five percent of Ohioans would end up paying higher taxes while only 30 percent would see taxes lowered, based on an analysis of the details available on gubernatorial candidate Ken Blackwell’s plan for a flat 3.25 percent income tax. Meanwhile, the richest Ohioans would reap thousands of dollars on average in annual tax savings apiece when the plan is fully implemented, and the state would lose more than $800 million a year in revenue. Those were among the findings of an analysis by the Institute on Taxation and Economic Policy (ITEP), a research group in Washington, D.C., with a sophisticated model of the state and national tax systems. Policy Matters Ohio released the report, updating an earlier one. It analyzes a flat tax that would allow those making $20,000 or less a year after exemptions to pay no state income tax.
