Federal Tax Brackets 2021 Ohio: A Critical Analysis

Ohio's tax legislation over the past 17 years has had a significant impact on its residents. Figure 2 illustrates the estimated effects of major tax changes since 2005 on Ohioans in different income groups. These changes include adjustments to personal income taxes, corporate taxation, and sales and excise taxes.

According to the Institute on Taxation and Economic Policy (ITEP), a non-partisan think tank, these tax changes have led to a state revenue shortfall of approximately $8 billion per year. This has hindered Ohio's ability to provide a solid foundation for its residents' well-being.

The wealthiest 20% of households, earning more than $107,000 annually, pay an average of over $5,500 less in taxes each year compared to 2005. On the other hand, the bottom 60% of households with the lowest incomes have seen their annual tax burden increase, while the richest 1% of households, with an average income of almost $1.5 million, contribute nearly $51,000 less per year than they did in the past.

This trend is alarming, as it suggests that Ohio's tax policies are favoring the wealthy at the expense of its families and communities. For too long, regular Ohioans have been asked to make sacrifices in areas like healthcare, education, and community development to benefit the rich and powerful.

The politicians who create state tax policy often justify these decisions with promises of future prosperity and romantic notions of abundance. However, the reality is that Ohio's tax legislation has created a system where the wealthy are rewarded, while the poor and middle-class individuals bear the brunt of the burden.

It is essential for Ohio to reassess its tax policies and prioritize fairness and equity. By doing so, the state can ensure that all its residents have access to the resources they need to thrive and contribute to the state's overall prosperity.

Federal tax brackets 2021 ohio