Philip Cole

Philip Cole is executive director of the Ohio Association of Community Action Agencies.

At some point in their lives, all Ohioans have dreamed of opening a present that holds their dream gift. While I have yet to be given my dream gift – keys to a red Corvette – Gov. John Kasich and the Ohio General Assembly are continuing to take strong steps to help low-wage working Ohioans achieve their dreams.

The Mid-biennium Budget Review (MBR) recently signed by Kasich is far-reaching legislation that includes new tax breaks for low- and middle-income Ohioans. Those of us who advocate on behalf of Ohioans in poverty see these tax reforms championed by the governor as three steps forward.

The first two steps are the expansion of Ohio’s new Earned Income Tax Credit (EITC) and an increase in the state income tax personal exemption for low- and middle-income Ohioans. The third step improves the eligibility requirements of publicly funded child care for lower-wage families.

Advocates for low-income Ohioans have vigorously supported an Ohio EITC since the 1980s. Yet former governors and members of the General Assembly from both parties did not get this done. Finally, through Kasich’s leadership, tax help for lower-paid workers became a priority as Ohio created its first-ever EITC last year. Now, one year later, by doubling the EITC with this new law, more than 500,000 Ohioans will get more help in moving up the economic ladder.

These new tax changes also allow low- and middle-income Ohioans to receive larger personal exemptions on their state income taxes. Ohio will increase the state income tax personal exemption from $1,700 to $2,200 for families earning less than $40,000 a year. For Ohio families who earn between $40,000 and $80,000, the state income tax personal exemption will increase from $1,700 to $1,950 a year.

Last year, the Ohio Association of Community Action Agencies commissioned a study to determine the real cost of living for families in each county of Ohio. We wanted to know the cost for Ohioans to be self-sufficient – to live by their own means without public or private assistance.

We found that, for families needing child care, the annual cost of child care services exceeded the cost of housing, exceeded the cost of health care, exceeded the cost of food, and exceeded the cost of transportation in every county in the state. That’s why it is encouraging that the governor’s new law allocates $16 million in new early-childhood education funding to help struggling families get greater access to high-quality child care.

These new tax breaks will serve low-income Ohioans well and show that Kasich is committed to creating an economic climate in Ohio that will lift the tide for all state residents.

As grateful as we are for the dream gift in this budget, we have yet to achieve the red Corvette. The governor has put that Corvette in reach, and to get there we must expand the EITC further and cut taxes to help those Ohio families who are struggling as well as improve Ohio’s overall economy. Still, Ohio is making progress. ■