The Plundercrew has spent a lot of time detailing the anti-woman aspects of Kasich’s budget (with more surely to come!) as well as its regressive tax swap. It should come as little surprise that Kasich’s tax plan is, at its essence:
Cut taxes that men pay and raise taxes that women pay
The Kasich plan raises some taxes and lowers others. I still haven’t seen revenue estimates, so we’ll treat each aspect as having a generally equal impact.
- Income tax: Ohio taxes earned income by 0.5% to 5%, depending on how much you make. Kasich cuts all rates, with larger cuts for higher rates.
How this benefits men: Men in Ohio earn 23% more than women. Since higher incomes get a larger tax cut, the grand majority of this cut goes to men.
- Business Investor tax: Ohio taxes income from a business that you own. Kasich cuts that in half.
How this benefits men: 72% of Ohio firms are owned by men only.
- Sales tax: The purchase of goods are taxed. Kasich raises the rate by 4.5%.
- Online sales tax: The purchase of ebooks and online music will now be taxed at 5.75%.
- Property tax: The state of Ohio gave a 12.5% rollback for owner-occupied property taxes. Businesses, farms, and multi-family rental units were ineligible for this rollback.
How this taxes women: Men in Ohio are more likely than women to rent. Women make up 56% of “non-family” heads of owner-occupied households1.
- Homesteading: Elderly homeowners are shielded from rising property values so that they can stay in their home. The budget lowers the eligibility for homesteading.
How this taxes women: 57% of Ohioans over 62 are women. Women live longer than men.
Relative to the status quo, Kasich is taxing women to finance tax cuts for men. North Carolina has created a calculator for their very similar plan; we don’t have that in Ohio, but single mothers can expect to pay higher taxes.
However, every tax that was cut is paid mainly by men; every tax that was raised is paid mainly by women.
1 To be fair, the end of the property tax rollback for owner-occupied dwellings and one- and two- family units is a gigantic unpredictable change in tax policy. This was $1.06 billion dollars in 2010 that was paid exclusively to homeowners and owners of small rental properties.
The Ohio Chamber of Commerce is responsible for this last-second, undebated billion dollar tax hike on Ohio’s homeowners. I honestly have no idea what it will cost or what the impact will be; I doubt that anybody does.