Saturday, July 17, 1999
State tax cuts will be less for '99
School money affects figure
BY MICHAEL HAWTHORNE
Enquirer Columbus Bureau
COLUMBUS — Most Ohioans will pay more in state income taxes next year than they did last year, even though Gov. Bob Taft and legislators cut tax rates.
|
EFFECT ON FAMILY OF 4
|
A family of four with two wage earners making $50,000 a year will save $51 on their 1999 state income tax returns, according to the Ohio Department of Taxation.
A similar family saved more than twice that amount on their 1998 returns: $126.
|
Higher-than-expected tax receipts and lower-than-projected spending left $293.2 million for tax cuts, Tom Johnson, the state's budget director, announced Friday.
But annual rate reductions depend on how much money is left in state coffers at the end of each budget year. By diverting a chunk of this year's surplus into school construction and technology, the governor and General Assembly left less for tax cuts than they did last year.
Facing an Ohio Supreme Court order to spend more on public education, Mr. Taft urged lawmakers earlier this year to use the entire budget surplus for school construction and classroom computers across the state.
The Republican-controlled General Assembly agreed to set aside $416 million for those purposes, but demanded that the rest of the surplus be used for tax cuts.
Because lawmakers never permanently reduced tax rates, the amount set aside for tax cuts varies from year to year depending on the surplus.
The state returned $701 million to taxpayers last year, $263 million in 1997 and $401 million in 1996.
House conservatives this spring pushed for a 5 percent permanent reduction in rates, arguing that the annual surpluses are a sign the state is collecting too much in taxes.
GOP legislative leaders beat back the idea. They said the state needed flexibility to deal with financial emergencies and a potential court decision that could order them to spend more on schools.
Young people need to show a little respect
Armstrong hopes man will return to moon
Astronauts bask in glories past
FBI stalks 'Average Joe'
Mason growth shows no sign of slowing
Zoo gorilla expecting
Former reporter given probation
Former Russian general has new mission
Hospitals, surgeon offer to help boy
State tax cuts will be less for '99
Racist tag rejected in Anderson
Restrictions target illegal bingo
Balloonist shares his perspective at 300 feet
Drought keeps sprinklers in demand
Ex-officer's appeal says sentence racist
Fire kills disabled woman
Futuristic Sky Loop transit would complement light rail
Report: Ky. access to Internet among lowest
Residents aid river testing
GET TO IT
Pops concert unmasks 2 musical 'Phantoms'
Bids for new courthouse steps too high
Bush gains in Ohio GOP delegation
Child pornographer, 79, receives 10-year sentence
Court may pay for study of sewage plant
Edgewood clock could hail 2000
Gateways get spiffy thanks to $200 gifts
Glendale called to aid family
Grants make transportation easier
Man's death linked to cocaine abuse
More pools to be open in next heat emergency
Retirement center looking certain
School plan redone, awaits board's OK
TRISTATE DIGEST
Zoning goes to Supreme Court
