Ohio
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.
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.
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.
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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Ohio
Operation 'Woah Nellie' in Masury, Brookfield Township, Ohio forces shelter to stop animal intake
The Healthy Hearts and Paws Project announced on Facebook that they are no longer taking in animals until others get fostered or adopted. The post says the shelter currently has no room for more animals after taking in one dog and over a dozen cats from a Masury home.
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Casey Laughter / Eclipse Sportswire
This year’s Preakness Stakes was advertised as the weak sister of the 2026 Triple Crown series. While Golden Tempo, Renegade, Commandment, and Chief Wallabee all took a hard pass on the middle jewel, they still ran the race at Laurel Park. The brunt of jokes before and after Napoleon Solo’s victory, the Preakness may yet enjoy the last laugh.
While Napoleon Solo and Iron Honor, the top two finishers from Maryland’s classic, will wait for the $1 million Haskell (G1) next month at Monmouth Park, Saturday’s $500,000 Ohio Derby (G3) attracted a solid field of 3-year-old males to Thistledown. Included in the group was a quartet coming straight out of the Preakness, led by Chip Honcho and Ocelli.
Bull by the Horns and Robusta were longshots off their results at Laurel and they ran like it in Ohio. Chip Honcho and Ocelli, on the other hand, were well supported on Saturday after running third and fourth in the Preakness.
After the pair put away the favored Desert Gate at the top of the stretch, they battled it out down the lane. In the end, it was Chip Honcho getting the better of his rival late to pull clear to a one-length score in the Ohio Derby. The Lexington Stakes (G3) winner Trendsetter was able to rally and get by the favorite for third, but this really was a two-horse race down the Thistledown stretch.
Trained by Steve Asmussen and ridden again by Jose Ortiz, Chip Honcho earned his second stakes win of his career, and his first of his sophomore season with the performance.
Before his solid third-place effort in the Preakness behind Napoleon Solo and Iron Honor, the son of Connect had run several good efforts in New Orleans, including a win in the Gun Runner and a strong second-place performance behind Paladin and ahead of the Kentucky Derby and Belmont Stakes hero Golden Tempo in the Risen Star (G2).
Despite his solid racing at Fair Grounds the decision was made to skip the Kentucky Derby with Chip Honcho and point for the Preakness instead. That decision already seems to be paying dividends.
On Saturday, he was steadied just a bit heading into the first turn but had already been asked to keep off the early lead set by Robusta. His ability to stalk from just off the pace in his last two races has seemingly made him a better and more dangerous horse.
When Ocelli rolled by him on the turn, he had to come up with a strong stretch drive to win and he did just that. Other than the Louisiana Derby, where he was hung out to dry a little bit early and faded to fifth, Chip Honcho has run nothing but good races in his career and looks to continue to be a player in the division as we move into the second half of the season.
As for Ocelli, I must admit that he was the one I was pulling for in the Ohio Derby. Also a son of the Curlin stallion Connect, he is a horse that I find it impossible not to root for.
After Saturday’s strong run for second, Ocelli has now run nine times in his career and remains winless. Sent off as the third choice in the Ohio Derby behind Desert Gate and Chip Honcho, the maiden once again ran a big race in defeat.
After displaying some rallying talent in his first three career starts, it has been a steady diet of stakes races and tough competition for the Whit Beckman-trained runner.
Even in the Sam F. Davis, won by Renegade, and the Virginia Derby, won by Incredibolt, Ocelli made his move from behind, but in both races, he was too immature to handle any adversity, and he backed out down the lane.
Undeterred, his connections were willing to keep trying. A solid rally to be third in the Wood Memorial (G2) was enough to get him into the Run for the Roses and his connections took full advantage. He actually briefly led in the stretch run of the Kentucky Derby, before finishing third as the longest shot on the board.
No horse was able to make up much ground in the Preakness, but Ocelli was the best of the late-runners, checking in 4th of 14. In the first two legs of the Triple Crown, the maiden finished ahead of all but 5 of the 30 horses he faced.
In the Ohio Derby, he had a wide trip and came with his patented rally under rider Tyler Gaffalione but could not hold off Chip Honcho in an exciting battle.
Despite still being winless in nine career starts, Ocelli has amassed $829,800. Not bad for a maiden, and not bad for a horse that was originally purchased for $12,000 as a yearling.
I cannot recall a maiden ever reaching the $1 million mark in earnings. I believe Ocelli has a chance to be the first. With a demanding schedule and a consistent far turn rally, it has been fun to watch the ride.
Chip Honcho and Ocelli, coming out of good efforts at Laurel Park, absolutely dominated Saturday’s Ohio Derby. Maybe we should start taking a more positive view of the 2026 Preakness Stakes.
MIDDLEFIELD, Ohio (WKBN) — The Ohio State Highway Patrol’s Chardon Post is investigating a fatal plane crash that killed three people around 3:30 p.m. Saturday.
According to a press release, about one mile east of the Geauga County Airport, a Piper Comanche 250 crashed into a field.
The plane sustained major damage — killing three Ohioans who were identified as Thomas A. Cunningham, 76, of Rome, John W. Taipale, 71, and Alexander C. Taipale, 40, both from Geneva.
OSHP was assisted by the Geauga County Sheriff’s Office, Geauga County Coroner’s Office, Geauga County Emergency Management Agency, Middlefield Fire Department and Community Care Ambulance.
The Western Reserve Port Authority, Youngstown-Warren Regional Airport’s executive director, Anthony Trevena, reached out to our team with a statement regarding the crash.
“We were heartbroken to learn that members of our extended YNG and Youngstown aviation family, were victims in today’s crash in Geagua County. Our deepest condolences go out the Cunningham and Taipale families. We ask that their privacy please be respected during this difficult time. The FAA and NTSB are leading the investigation to determine the cause and will provide any updates as information becomes available.,” Trevena said.
The Federal Aviation Administration and National Transportation Safety Board were notified of the crash.
The crash remains under investigation.
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