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.”
GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Experience history through augmented reality in Middletown
The Sandy Hook Foundation and Monmouth County Historical Association have unveiled an augmented reality experience that tells the story of Colonel Tye, a slave turned Revolutionary War raider for the Loyalists. Video provided by The Sandy Hook Foundation.
Ohioans have until May 25 to help document the final resting places of Revolutionary War veterans buried across the state.
The effort is part of the Revolutionary War Veterans Graves Identification Project, a first-of-its-kind initiative led by America 250-Ohio, the commission organizing the state’s celebration of the nation’s 250th anniversary. The project aims to create a publicly accessible database of veterans’ graves, complete with photographs, inscriptions and GPS coordinates, according to a community announcement.
The public can submit information through the Grave Marker and Cemetery Collection Portal until May 25. Submissions will be reviewed and finalized before the database is released July 4, the 250th anniversary of the signing of the Declaration of Independence.
Thousands of graves documented by volunteers
Launched on Memorial Day 2025, the project has mobilized about 350 volunteers who have documented more than 4,000 grave markers across Ohio. The database is expected to include information on up to 7,000 veterans believed to be buried in the state.
Clusters of graves have been found in areas such as Clermont County and regions corresponding to the original Virginia Military and United States Military Districts. The first documented entry was the grave of Nathaniel Massie, a Virginia Militia private who founded the city of Chillicothe.
A window into Ohio’s early history
Ohio is home to a large number of Revolutionary War veterans’ graves, despite not being one of the original 13 colonies. After the war, portions of Ohio’s land were granted to veterans as payment for their service, drawing many to settle and build communities in the region.
Previously, records from organizations like the Sons of the American Revolution and Daughters of the American Revolution identified about 6,800 veterans buried in Ohio, but lacked precise locations and current photographs.
How to participate before the deadline
Anyone with a smartphone can contribute to the project. No historical expertise is required. Here’s how to participate:
- Visit ohiohistory.org/revwargraves to review instructions and explore the map of cemeteries already identified as likely grave sites.
- Download the free Survey123 app on your smartphone.
- Visit a cemetery, photograph the grave marker, record inscriptions, and log GPS coordinates.
- Submit your entry through the portal before May 25.
Volunteers who do not wish to remain anonymous will be acknowledged by name for their contributions. The completed database will remain publicly accessible beyond the America 250 celebration and will be maintained by the Ohio State Historic Preservation Office and the Ohio History Connection.
A lasting legacy for future generations
The project is led by the Ohio History Connection and its State Historic Preservation Office, with support from Terracon Consultants, Inc. Submissions appear on a live, publicly viewable dashboard at ohpo.maps.arcgis.com.
“These are the very first veterans of the United States of America,” Krista Horrocks, historian, cemetery preservationist, and project manager with the Ohio History Connection said in the announcement. “Documentation is the part that will outlive all of us. Gravestones won’t survive forever, but if we can record their location and story today, that information will be here for generations to come.”
To learn more, view the live dashboard, or submit information on a grave site, visit ohiohistory.org/revwargraves.
This story was created with the assistance of Artificial Intelligence (AI). Journalists were involved in every step of the information gathering, review, editing and publishing process. Learn more at cm.usatoday.com/ethical-conduct.
COLUMBUS — Ohio Governor Mike DeWine announced Wednesday that he is implementing several new fraud prevention initiatives to strengthen and build-upon long-standing efforts to fight fraud, waste, and abuse in the Ohio Medicaid system.
“Ohio has long been a national leader in fighting Medicaid fraud. Ohio has one of the best Medicaid Fraud Control units in the country, and, in 2018, Ohio became the first state to implement Electronic Visit Verification in home health care,” DeWine said.
“Today, we are ready to begin several new initiatives long in development that will enhance this nation-leading work and further protect taxpayer funds from those trying to defraud the State.
“I thank the Trump Administration for their partnership and collaboration that is allowing us to proceed with these reforms much faster than previously possible.”
New initiatives
DeWine said he is directing the Ohio Department of Medicaid to implement the following:
- Statewide New Provider Moratorium. The Ohio Department of Medicaid will today ask the Center for Medicare and Medicaid Services (CMS) so Ohio may implement a six-month moratorium on new home-healthcare and hospice businesses being able to become Medicaid providers. This will allow Ohio Medicaid to stop enrollment of new providers and assess existing providers to help remove those at high risk for having committed fraud.
- Immediate Payment Suspension to High-Risk Providers. Ohio Medicaid will today begin a policy of immediately removing and suspending payment to providers whose billing practices show “red flags” that indicate a high probability of fraud. Ohio Medicaid already has a robust payment suspension protocol that is currently used to stop payments to questionable providers. In January, Ohio Medicaid began the process of implementing new data analytics tools to help identify billing data anomalies that could better identify fraud. To date, this process has identified 87 providers who will be subject to further review and potential payment suspension.
- Executive Order for Emergency Rules. The Governor will be issuing an Executive Order that will allow the Ohio Department of Medicaid to implement emergency rules to require more frequent revalidation of providers being identified as higher-risk for committing fraud. Governor DeWine sent a letter to CMS on May 1 committing Ohio to partnering with the Trump Administration and using a more stringent revalidation process to better prevent fraud.
- Mandatory GPS Requirement for Electronic Visit Verification. Ohio Medicaid will file rules to require GPS for all providers using Electronic Visit Verification (EVV). Since March 2025, Ohio Medicaid has begun phasing in EVV as a mandatory requirement for home healthcare provider payment. In December, DeWine authorized Ohio Medicaid to begin the information technology investments needed to make GPS mandatory for EVV. Ohio Medicaid now ready to make this rule change to implement the requirement. Ohio Medicaid has worked collaboratively with Ohio Auditor Keith Faber on identifying solutions to issues identified in the Auditor’s audits of Ohio Medicaid, and this new rule will implement a key recommendation of the audits.
- Mandatory EVV for Live-In Caregivers. Ohio Medicaid will begin the rulemaking process to require live-in caregivers to use EVV during home healthcare and as a requirement for payment. Currently, family and live-in caregivers are exempt from this requirement.
Ohio’s work in prosecuting Medicaid fraud
Ohio has been a national leader in catching and prosecuting Medicaid fraud thanks to a strong partnership between Ohio Medicaid and the Ohio Attorney General’s Office and its Medicaid Fraud Control Unit, the governor said.
Since the beginning of 2023, Ohio has secured 444 Medicaid fraud indictments, 481 convictions, and 146 civil settlements and judgments resulting in $78.4 million in recovered taxpayer fund.
Under Ohio Attorney General Dave Yost, the unit received a U.S. Office of the Inspector General’s Award for Excellence in Fighting Fraud, Waste, and Abuse in 2022, and it ranked #1 in the nation for number of convictions secured in 2015 under then-Attorney General Mike DeWine.
Utilizing home healthcare to protect taxpayer dollars
Home and community-based care programs have been a core component of Medicaid services for decades since they were initiated under Ronald Reagan’s Administration.
Ohio is one of 47 states and the District of Columbia that provides such care under a waiver granted by CMS.
Ohio’s home and community-based care programs are grounded in data showing that legitimate in-home care is typically safer for individuals and significantly more affordable for taxpayers.
In 2024, Ohio saved more than $600 million in taxpayer funds that would have been expended had patients receiving home healthcare been diverted to skilled nursing or other residential care services, saving several billion dollars over the course of the DeWine Administration.
On average, home health care costs half as much as placement in a nursing facility.
Ensuring access to appropriate home-based care is both a responsible use of public resources and a critical part of meeting the needs of our most vulnerable Ohioans who otherwise would require placement in higher-cost nursing facilities.
Additional efforts to fight fraud, waste & abuse
Providing care in a home setting requires a robust set of controls to detect and prevent fraud.
Ohio Medicaid has been proactively evaluating all program integrity initiatives to ensure taxpayer dollars are well spent and that quality care is being provided.
The governor’s office said the department has been engaged in a thorough review of programs and policies to evaluate any risks to the integrity of the program, identify potential gaps that could be exploited, and explore opportunities to leverage new and emerging AI and data analytic tools to stay one step ahead of anyone looking to exploit the system.
As part of that work, since the start of 2026, the Department has initiated new prior authorization requirements for high-risk services to ensure medical necessity.
Ohio Medicaid launched efforts to build new data analytic capabilities to identify unique outliers in billing patterns, better assess vulnerable business ownership structures, and improve coordination of fraud fighting efforts.
These efforts are designed to improve the early detection of potential fraud and identify future areas of inherent program risk.
To confirm that billed services are actually rendered, Ohio Medicaid relies on an extensive set of safeguards, including:
- Comprehensive provider screening and continuous compliance monitoring.
- Mandatory electronic visit verification capturing date, time, and service location.
- Advanced analytics that flag unusual billing patterns or service trends.
- Routine and targeted audits performed by program integrity staff.
- Coordination with state and federal partners when concerns arise.
WARREN, Ohio (MyValleyTributes) – Aaliyah Tene McBride, 47, departed this life Sunday, Sunday, May 10, 2026 at her residence, following complications from an extended illness.
She was born January 27, 1979 in Warren, Ohio, the daughter of Daryl T. and Karen I. Jones McBride Sr., residing in the area for four years coming from Gastonia, North Carolina.
Aaliyah was employed with the Youngstown City School District for one year as a Bus Driver. She was a 2000 graduate of Pittsburgh Culinary School.
She enjoyed cooking, fishing and was an avid Cleveland Browns football and Boston Celtics basketball fan.
She leaves to mourn her mother, Ms. Karen I. McBride Jackson of Warren; grandparents, Ali and Aaliyah Marcelaine Bashir of Warren and Ms. Diane McBride of Charlotte, North Carolina and a host of relatives and friends.
She was preceded in death by her father, Daryl T. McBride, Sr.; one brother, Daryl T. McBride, Jr.; one sister, Joleesa D. Hameed; grandparents, Clifton Jones and one great-great grandmother, Maxine Benford.
Funeral Services will be held Saturday, May 16, 2026 at 11:00 a.m. at the Second Baptist Church, with Calling Hours from 10:00-11:00 a.m. Burial will take place at Oakwood Cemetery.
Condolences for the family may be sent to Ms. Karen McBride Jackson, 3134 Williamsburg Street, NW, Warren, OH 44485.
Arrangements of comfort were handled by the Sterling-McCullough Williams Funeral Home.
To send a flower arrangement in memory of Aaliyah T McBride, please click here to visit our sympathy store.
-
Missouri5 minutes ago
Missouri Lottery Powerball, Pick 3 winning numbers for May 13, 2026
-
Montana11 minutes ago
Montana Lottery Powerball, Lotto America results for May 13, 2026
-
Nebraska17 minutes agoNebraska QB has high expectations heading into 2026 season
-
Nevada23 minutes agoArbor View beats rival Centennial for 5A boys volleyball state title
-
New Hampshire29 minutes agoEmily (Em) Madeline Peters
-
New Jersey35 minutes agoOlder NJ residents consider leaving as costs rise, survey shows
-
New Mexico41 minutes agoNew Mexico elementary school partners with NASA and earns elite STEM certification
-
North Carolina47 minutes agoPolice: North Carolina man charged after high-speed chase in Erie County, arrested in the Town of Perry