Impact Of Tax Cut Freeze Debated

Monday,  October 5, 2009 4:14 PM

Updated: Tuesday,  October 6, 2009 7:45 AM

Video
COLUMBUS, Ohio — Gov. Ted Strickland has insisted since his press conference last week that his plan to freeze this years income tax cut is not a tax increase.

What is clear, however, when you run the numbers is that those Ohio families making $100,000 and above will be paying a bigger chunk than those paying less.

Financial planner Carol Friedhoff said that is true, but the numbers are so small it shouldn't hurt anybody.

"If I look at $200,000 adjusted gross income, I'm going to have to pay maybe $500 more.  I'm making $200,000, I can spend that easily on who knows what," said Friedhoff.

Conservative groups like the Buckeye Institute argue before any postponement of tax cuts, there should be an examination of the salaries of the government workforce.

"There's a real punishment for small business owners who have started these businesses and are paying quarterly taxes.  If they've underpaid their taxes by so much the first ten months of this year, there going to get a penalty by the Department of Revenue," said Matt Mayer of Buckeye Institute.

Former state tax commissioner Tom Zaino told ONN's Jim Heath that his fear is the message a tax cut freeze sends to those making a million dollars or more a year. 

He believes some may choose to simply leave the state. If that happens, he argues, than even more revenue for Ohio will be permanently lost.

Stay with ONN and ONNtv.com for additional information.

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