Friday, November 25, 2016

Beware Of Flat Tax Snake Oil Salesmen

According to a Dayton Daily News article, Ohio State Senator Bill Coley is proposing that Ohio's income tax be changed from a graduated (multi bracket) system to a flat tax. The Senator states that the tax would be tax revenue neutral.

If the tax revenue remains the same and the average household pays more what has to take place? You guessed it.

$60,000 household income no dependent deductions allowed X 3.5% = $2,100
$600,000 income X 3.5% = $21,000
If Ohio tax base is $10,00 tax is $350
$60,000 household income four dependents = $1,290
$600,000 income $27,555.
If Ohio tax base is below $10,000 tax, is $0
Posted by Paul Hunter

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