Our sister organization, Innovation Ohio Education Fund, has reviewed the components of the two-year budget proposed by the Kasich administration. Today they released an analysis of the plan to reduce the state sales tax while expanding it to a number of services that have never been taxable before.
In sum, the plan is part of a massive tax shift away from the highly progressive income tax toward the more regressive sales tax. Policy Matters Ohio estimates that most Ohioans will pay more under the plan, while the top 1% will get a tax cut of over $10,000. Today, in the first of a series of hearings on the plan in the Ohio House this week, the plan got a decidedly mixed reception in a hearing designated for its supporters.
Previous FY 2014-2015 budget analysis from IO Ed Fund: