As this Dispatch editorial explains, Gov. John Kasich and legislators passed tax cuts to help lift all Ohioans and lay the groundwork for job creation. It’s working but there’s more to do.
The recently passed midbiennium budget review included some tax revisions that will do much to help families and small businesses.
But the entire state also will gain, as these changes clip social-welfare costs and boost economic growth.
Among the many provisions Gov. John Kasich and the legislature included in the budget bill is one to increase the state’s year-old earned-income tax credit. Doubling the Ohio benefit from 5 to 10 percent of the federal credit claimed will help about 475,000 working poor in Ohio.
The earned-income credit serves as an incentive for low-wage-earning Ohioans to leave welfare and better themselves with work. And that can have a huge effect on society and long-term costs.
“These tax credits truly make work pay for low-wage earners, ” said Lisa Hamler-Fugitt, executive director for the Ohio Association of Foodbanks, prior to the passage of the budget bill.
“Research has found that lifting low-income families’ income when a child is young not only tends to improve a child’s immediate well-being, but is associated with better health, more schooling, more hours worked and higher earnings in adulthood,” according to the nonpartisan think tank Center on Budget and Policy Priorities.
Studies show most families use the tax savings for basic necessities.
Read the entire article here and learn more about Ohio’s tax cuts.
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