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Income tax cut isn't much of a cut for Ohioans

Ohioans who make $50,000 a year would only get $34 back from the state. However, people in the Buckeye state who make less than $25,000 wouldn't pay any income tax.

As part of Ohio’s $75 billion two-year budget,  lawmakers approved a 3% across-the-board income tax cut. Many believe the cut is another way to make the Buckeye state more competitive with the rest of the country when it comes to attracting jobs.

“Some of those fastest-growing states are Texas and Florida. Guess what? Texas and Florida have a zero income tax,” said Ohio Senator Jay Hottinger (R-Newark).

The 3% income tax cut was part of the state's 2022 and 2023 budget which was passed by both the Ohio House and Senate Monday night.

Ohio has cut income taxes over the past two decades and despite that, Ohio’s median income remains below the national average.

“I think this is very unfortunate and a wrongheaded move by the general assembly,” said Zach Schiller, Research Director Policy Matters Ohio.

The income tax cut is actually very minimal when you break it down.

If you earn $50,000 a year, you're getting $34 back from the state and $44 if you earn $60,000.

If you earn $100,000, you get $85 dollars back.

Those who earn under $25,000 will pay no income tax which the state says impacts 115,000 Ohioans.

“It is important that Ohioans keep what they earn but it's important that we continue to be competitive across the country,” Senator Hottinger said.

By passing an income tax cut, Ohio is giving back nearly $1.7 billion.

Supporters say that's good government. Critics say that money should be supporting critical needs in the state.

“Just because we have money doesn't mean we should spend money,” Senator Hottinger said.

“This is going to cost us $1.7 billion over the next two years. Think of that what that could support. We've had a huge debate over school funding. Think about how much that could do for our public schools or making our colleges more affordable,” Schiller said.

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