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The Mid-Biennium Review (MBR) contains three tax cut proposals. The first tax cut targeted at low income people is an expansion of the Earned Income Tax Credit (EITC). The second proposal is an expansion of the personal exemption for people making less than $80,000 a year (middle income). Finally, the most expensive proposal is a phased in 8.5% cut to personal income tax rates which benefits the wealthiest Ohioans the most.
EITC: Total $94.2 million
Fiscal year 2015: $29.9 million
Fiscal year 2016: $31.4 million
Fiscal year 2017: $32.9 million*
Personal Exemption Expansion: Total $426 million
Fiscal year 2015: $142 million
Fiscal year 2016: $142 million
Fiscal year 2017: $142 million
Personal Income Tax Cut: Total $2.186 Billion
Fiscal year 2015: $461 million
Fiscal year 2016: $816 million
Fiscal year 2017: $909 million
All data from the Legislative Services Commission analysis of the MBR (HB 472)
*LSC did not provide a 2017 estimate of the cost of the EITC so this is an estimate.
**There is overlap in the EITC and the personal exemption credit. Without refundability of these credits, there will be less benefit to low and middle income individuals than might be inferred by combining the numbers above. If both the personal exemption and EITC are implemented, the anticipated cost is $453 million over three years.
