Friday, February 08, 2013

Ohio Governor’s Tax Plan Would Cut Taxes For Wealthy, Raise Them On The Poor

Most people reading this probably can't realize how much $77 is to people making little money. To pay for tax cuts for the wealthy by increasing taxes on the poor is immoral.
And in this state, the poor are already paying a higher percentage of their income in taxes than the rich do, because of the reliance on the sales tax. (I am not sure if this is referring to state and local taxes, or all taxes.)
This is the reason some Republicans want the misnamed "Fair Tax", because it is a national sales tax that would reduce taxes on the rich, while raising them on those who do the actual work of our society.

http://thinkprogress.org/economy/2013/02/08/1559921/kasich-tax-the-poor/

By Travis Waldron posted from ThinkProgress Economy on Feb 8, 2013

Ohio Gov. John Kasich (R) has joined the growing list of Republican governors pushing income tax cuts for the wealthiest citizens of his state, and like those other governors, his plan would raise taxes on the poor to pay for it.

Kasich’s plan would cut income tax rates by 20 percent and some business tax rates in half, and it would pay for the plan by levying sales taxes on goods and services that were previously exempt. Since sales taxes are inherently regressive, Kasich’s plan would raise taxes on the poorest 60 percent of the state’s residents by as much as $77. The top 1 percent, though, would see an average tax cut of $10,369, according to an analysis by Policy Matters Ohio:

The proposal would provide a $10,369 annual tax cut on average to taxpayers in the top 1 percent of the income spectrum, who made more than $335,000 in 2012. The bottom fifth of taxpayers, making less than $18,000 a year, would see an average increase of $63. Those in the middle fifth, making between $33,000 and $51,000 in 2012, would come out about even, averaging an annual tax increase of $8.

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