Wednesday, October 31, 2012

Wealthy Ohioans Claimed Low-Income Tax Credit

From: Cranes Business

New study finds wealthier Ohioans use state's low-income tax credit

1:00 pm, October 31, 2012

A new study of Ohio tax filings finds that nearly 2,200 Ohio income tax filers with six-figure incomes — including 10 millionaire households — used the low-income tax credit to reduce their state income tax in the 2010 tax year.
The study, “Closing the Loophole in Ohio's Low-Income Tax Credit,” by the Center for Community Solutions, argues that limiting the deduction with a ceiling of $50,000 in federal adjusted gross incomes for using the credit would save the state $1.36 million a year.
The Center for Community Solutions is a Cleveland-based social service advocacy organization.

Jon Honeck, the report's author and the center's director of public policy and advocacy, acknowledged that the deduction, in general, is accomplishing its goal of reducing the state tax burden on those with incomes below $20,000. But, he wrote in the report “the loophole allowing households with high incomes to access the (low-income tax) credit should be closed.”

The Ohio Department of Taxation has estimated that there are 128 tax breaks on the books and they will cost the state about $15 billion over the two-year budget period that began last July 1, 2011.

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