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Report: State and local taxes in Ohio (still) fall most heavily on the poor – Ohio Capital Journal

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Report: State and local taxes in Ohio (still) fall most heavily on the poor – Ohio Capital Journal


When the United States adopted an income tax in 1913, a major purpose was to make the system progressive and ease growing inequality. More than a century on, Ohio’s system of taxation is having the opposite effect — it’s taxing poor residents much more heavily than the rich and driving further inequality, according to a report released this month.

In fact, Ohio has the 15th-most unequal system of taxation, according to the Institute for Taxation and Economic Policy’s 7th annual analysis, “Who Pays?” 

The Buckeye State also has the dubious distinction of having the 12th-highest state and local tax rate — 12.7% — for the poorest 20% of households, the report said. That was more than double the rate — 6.3% — paid by the 1% of households with the highest incomes in Ohio. Additionally, the poorest 80% of households paid at least 10% in state and local taxes, which means the bulk of Ohioans face significantly heavier burdens than their richest neighbors.

Ohioans are hardly alone. The Institute for Taxation and Economic Policy report said that in 41 states, the highest 1% are taxed at lower rates than everyone else and that 34 — including Ohio — tax the bottom 20% at a higher rate than any other income group.

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Not only do low and middle-income households pay more of state and local taxes as a share of their own income, nationally they also pay more in terms of their share of their states’ overall incomes, the report said.

In other words, not only do the rich, on average, pay a lower effective state and local tax rate than lower-income people, they also collectively contribute a smaller share of state and local taxes than their share of all income,” it said. “This limits states’ ability to raise revenue, particularly as inequality increases. Research shows that when income growth concentrates among the wealthy,  state revenues grow more slowly, especially in states that rely more heavily on taxes that disproportionately fall on low and middle-income households.”

Poverty and inequality are serious problems in Ohio. For example, Medicaid, the state/federal health program for the poor, serves almost a third of Ohioans.

Many also lack the most basic necessities. 

The U.S. Census Bureau’s Household Pulse Survey in October estimated that 357,000 Ohioans often or sometimes didn’t have all the food they need. It also estimated that members of 62,000 households who rent thought it was very or somewhat likely they would be evicted in the next two months. 

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Even so, they’re being asked to shoulder more of the burden for state and local government than the richest Ohioans.

The Institute for Taxation and Economic Policy report looked at all state and local taxes people pay, including those on income and property and user fees such as sales and gasoline taxes. Since user fees are the same regardless of income, the less you earn the more of a percentage they take up of your income.

Many economists say relying too heavily on such taxes serves to make the poor poorer.

The federal income tax was proposed as a way of raising revenue — and to address growing inequality. President William Howard Taft, an Ohio Republican, in 1909 proposed a constitutional amendment allowing for it. The amendment was ratified in 1913, and in the debate leading up to ratification many representing agrarian interests said making things more equal was the entire point.

​​“The purpose of this tax is nothing more than to levy a tribute upon that surplus wealth which requires extra expense, and in doing so, it is nothing more than meting out even-handed justice,” said Rep. William H. “Alfalfa Bill” Murray, D-Okla.

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At the height of the push, Ohio voters in 1912 gave their OK for a state income tax by a 52-48 margin. But it wasn’t until 1971 that the General Assembly adopted it, and opponents have been chipping away and doing other things to reduce the burden on the wealthy ever since.

For example, a tax break benefitting people who can run their income through a limited liability company is costing the state $1 billion a year, despite doing little to fulfill promises to juice the Ohio economy.

In addition, the budget passed by the legislature and signed into law last year reduced the top tax rate in Ohio from 3.99% to 3.75% and then will consolidate the top two brackets and reduce them to 3.5%.

The moves seem likely to make worse what the Institute for Taxation and Economic Policy found in its analysis.

“Forty-four states’ tax systems exacerbate income inequality,” it said. “When the lowest-income households pay the greatest proportion of their income in state and local taxes, gaps between the most affluent and everyone else grow larger.”

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Former Ohio State Linebacker Gabe Powers Transferring to Kansas State

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Former Ohio State Linebacker Gabe Powers Transferring to Kansas State


Gabe Powers will continue his college football career at Kansas State.

The former Ohio State linebacker signed with the Wildcats on Friday after entering the transfer portal earlier this month, according to multiple reports.

Powers brings two years of eligibility to Kansas State after three seasons at Ohio State. Powers played only sparingly in his three years as a Buckeye, though he returned an interception for a touchdown in the fourth quarter of Ohio State’s season-opening win over Akron this season.

Had Powers stayed at Ohio State, he likely would have remained a backup linebacker next season, assuming Sonny Styles stays at OSU for his senior year. Arvell Reese is in line to replace Cody Simon as the Buckeyes’ starting middle linebacker while Payton Pierce and C.J. Hicks – if he doesn’t make a full-time move to the edge – are also candidates for increased playing time at linebacker in 2025.

Powers, who opted not to remain with the Buckeyes for the CFP, chose Kansas State after also visiting Minnesota, North Carolina and Wisconsin. He becomes the second Buckeye since the end of the regular season to transfer to a new school, joining wide receiver Jayden Ballard, who committed to Wisconsin earlier this week.





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Ohio State or Tennessee? Will the favorites win? Our 1st-round College Football Playoff picks

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Ohio State or Tennessee? Will the favorites win? Our 1st-round College Football Playoff picks


The College Football Playoff for the 2024 season finally has arrived, with four first-round games set to unfold this weekend at campus sites.

  • WATCH: Stream most of this week’s top college football games live for FREE with Fubo (free trial) or with DirecTV Stream (free trial).

It starts Friday night, with No. 7 Notre Dame playing host to No. 10 Indiana. Then on Saturday, 11th-seeded SMU visits No. 6 Penn State, followed by No. 5 Texas vs. No. 12 Clemson and No. 8 Ohio State playing host to No. 9 Tennessee.

All four winners will advance to the CFP quarterfinals, which are set for Dec. 31 and Jan. 1 at bowl sites around the country. The Ohio State-Tennessee winner will face No. 1 Oregon in the Rose Bowl; the Texas-Clemson winner will play No. 4 Arizona State in the Peach Bowl; the Penn State-SMU winner will take on No. 3 Boise State in the Fiesta Bowl; and the Notre Dame-Indiana winner will go up against No. 2 Georgia in the Sugar Bowl.

Check out the odds for the four first-round playoff games, plus score predictions from the college football coverage team at The Oregonian/OregonLive.

The College Football Playoff bracket for the 2024-25 season.The Associated Press

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No. 10 Indiana (11-1) at No. 7 Notre Dame (11-1)

Game details: 5 p.m. PT Friday at Notre Dame Stadium in Notre Dame, Indiana

TV channel and live stream: ABC/ESPN and Watch ESPN

Latest line: Notre Dame by 7

Over/under: 50.5

Predictions

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Ryan Clarke: Notre Dame 27, Indiana 17

James Crepea: Notre Dame 35, Indiana 21

Nick Daschel: Notre Dame 30, Indiana 23

Aaron Fentress: Notre Dame 29, Indiana 23

Joe Freeman: Notre Dame 30, Indiana 21

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Sean Meagher: Notre Dame 38, Indiana 35

Joel Odom: Notre Dame 34, Indiana 24

Bill Oram: Notre Dame 31, Indiana 17

No. 11 SMU (11-2) at No. 6 Penn State (11-2)

Game details: 9 a.m. PT Saturday at Beaver Stadium in University Park, Pennsylvania

TV channel and live stream: TNT and Max

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Latest line: Penn State by 9

Over/under: 52.5

Predictions

Ryan Clarke: Penn State 31, SMU 10

James Crepea: Penn State 28, SMU 21

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Nick Daschel: Penn State 34, SMU 24

Aaron Fentress: Penn State 33, SMU 22

Joe Freeman: Penn State 28, SMU 17

Sean Meagher: Penn State 35, SMU 21

Joel Odom: Penn State 41, SMU 27

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Bill Oram: Penn State 35, SMU 33

No. 12 Clemson (10-3) at No. 5 Texas (11-2)

Game details: 1 p.m. PT Saturday at DKR-Texas Memorial Stadium in Austin

TV channel and live stream: TNT and Max

Latest line: Texas by 12

Over/under: 50.5

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Predictions

Ryan Clarke: Texas 23, Clemson 20

James Crepea: Texas 35, Clemson 24

Nick Daschel: Texas 27, Clemson 17

Aaron Fentress: Texas 39, Clemson 24

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Joe Freeman: Texas 35, Clemson 20

Sean Meagher: Texas 24, Clemson 17

Joel Odom: Texas 35, Clemson 30

Bill Oram: Texas 55, Clemson 10

No. 9 Tennessee (10-2) at No. 8 Ohio State (10-2)

Game details: 5 p.m. PT Saturday at Ohio Stadium in Columbus

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TV channel and live stream: ABC/ESPN and Watch ESPN

Latest line: Ohio State by 7

Over/under: 46.5

Predictions

Ryan Clarke: Tennessee 34, Ohio State 28

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James Crepea: Ohio State 35, Tennessee 28

Nick Daschel: Ohio State 35, Tennessee 31

Aaron Fentress: Ohio State 31, Tennessee 23

Joe Freeman: Ohio State 28, Tennessee 24

Sean Meagher: Tennessee 33, Ohio State 31

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Joel Odom: Ohio State 27, Tennessee 20

Bill Oram: Tennessee 24, Ohio State 14



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Ohio vs Jacksonville State LIVE STREAM (12/20/24): Where to watch Cure Bowl for free, time, channel

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Ohio vs Jacksonville State LIVE STREAM (12/20/24): Where to watch Cure Bowl for free, time, channel


The Jacksonville State Gamecocks and Ohio Bobcats, two conference champion programs who just bid farewell to their head coaches, will clash at the 2024 StaffDNA Cure Bowl on Friday, December 20 (12/20/2024) at Camping World Stadium in Orlando, Florida.

Ohio vs. Jacksonville State will air nationwide on ESPN, and can be streamed live on fuboTV (free trial).

Here’s what you need to know:

What: StaffDNA Cure Bowl

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Who: Ohio vs. Jacksonville State

When: Friday, December 20, 2024

Where: Camping World Stadium, Orlando, Florida

Time: 12 p.m. ET

TV: ESPN, ESPN Deportes

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Channel finder: DirecTV, Verizon Fios, Cox, Xfinity, Spectrum, Optimum

Live stream: fuboTV (free trial), DirecTV Stream (free trial), Sling (half off first month), Hulu + Live TV

READ MORE: College football bowl season 2024-25: Full schedule, dates, kick times, TV channel, matchups

Here’s a recent college football story via The AP:

Rich Rodriguez left West Virginia 17 years ago in part because he was frustrated over the school’s refusal to give him more money for his assistant coaches.

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He’ll have plenty for them this time around.

Under his memorandum of understanding signed Dec. 11 and obtained by The Associated Press through a Freedom of Information Act request, Rodriguez signed a five-year agreement and will be paid $3.5 million in his first season. That figure increases $100,000 in each subsequent season. His predecessor, Neal Brown earned $4 million this season before being fired on Dec. 1.

Rodriguez also will have a $5 million pool annually for his on-field assistant coaches along with $2.5 million for his football support staff, according to the agreement.

The 61-year-old Rodriguez was introduced Friday for his second stint in Morgantown. He went 60-26 at West Virginia from 2001 to 2007.

The Mountaineers went 6-6 this season under Brown and will meet No. 25 Memphis in the Frisco Bowl on Tuesday night.

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After he left for Michigan in December 2007, Rodriguez has said promises made by a previous administration at West Virginia were not kept and his request for more money for his assistant coaches was rejected. Rodriguez said his relationship with then-athletic director Ed Pastilong had disintegrated by August 2007 to the point that the two men barely spoke.

In December 2006, Rodriguez considered and then turned down a six-year, $12-million offer to coach at Alabama — a job later taken by Nick Saban. Rodriguez then was given a $100,000 supplemental payment for his assistant coaches at West Virginia. He said later that, prior to leaving for Michigan, he was denied another request for an additional $50,000 for the assistant coaches pool.

Rodriguez spent three seasons at Michigan and six at Arizona before being fired from each head coaching job. He spent the last three seasons as head coach at Jacksonville State, which won the Conference USA championship game over Western Kentucky earlier this month.

Under his agreement, West Virginia will pay Rodriguez’s $1.25 million buyout to Jacksonville State. He’ll be required to pay 25% of his total compensation over the life of the agreement if he leaves before the contract expires, and Rodriguez will receive 50% of his remaining total compensation if he’s fired.

What is fuboTV?

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FuboTV is a live TV streaming service focused on live sports, including U.S. and international soccer, the NFL, MLB, NBA, NHL and more. It also includes its own fubo Sports Networks with exclusive programming, and 35 regional sports networks such Bally Sports and YES Network. fuboTV carries 55,000 live sporting events annually, and offers 202 channels starting at $79.99, includes unlimited DVR, and streams on most devices. Right now you can sign up for fuboTV and get your first month for just $44.99 after a 1-week free trial.



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