2022 Tax Guide, Opinion, Opinion

Tax Cuts Make You Pay More

By Mark Dent , January 4, 2024 0 Comments

During my lifetime, politicians have championed failed campaigns of tax cuts. They have exceeded expectations at reducing the taxes paid by the wealthiest Americans while shifting the tax burden to those who can least afford it. Consider this- low-income Americans (and all other Americans) pay a greater share of their income to taxes than the wealthiest top .1%. Politicians don’t really ‘cut taxes’, they ‘shift them’. They shift taxes paid from income taxes to sales tax, payroll taxes, real estate taxes, local taxes, and other taxes. If you feel like you are paying more taxes for every ‘tax cut’ it’s because you probably are.

The tax cuts from Ronald Regan were followed by payroll tax increases. The Bush tax cuts reduced funding to the states resulting in states raising taxes. Tax cuts from Governor Kasich led to increased sales tax, real estate taxes, and gas taxes. We have reached the point that the less you make the more you pay. In Ohio, the top 1% pays about 8% in state taxes while the bottom fifth pays almost 12%. Income taxes go down and other taxes go up.

While we have shifted the tax burden to the middle class and those at the bottom, upward mobility has declined, income inequality has exploded and now the expectation is our children will do worse than us if we are not in the top income brackets.

Results of our Tax Policies

The result of our tax policies makes sense; this regressive tax system puts small businesses and households with low or moderate-income at a disadvantage. How can small businesses compete against the tax advantages of larger corporations? Average households find it harder to get ahead while those at the top have the cards stacked in their favor. Our economy is dominated by bigger and bigger corporations that crush their competition and extract revenue from our local economies. Our tax policy has made us poorer and less connected to local businesses and our communities.

All the problems these ‘cuts’ produce have got us clamoring for more- ‘tax cuts.’

LEARN MORE: Policy Matters Ohio

Written By

Mark Dent

Hello! My name is Mark, I'm a Berea resident and owner of the Law Office of Mark Dent. I’ve been preparing estate plans since 2003 when I served in the Army as a JAG Attorney. I’m a graduate of Ohio Northern Law School and have bachelor's degrees in both Political Science and Computer Science. My wife and I enjoy running 5ks and exploring the Metro Parks. I am located around the corner from Dick’s Bakery, which I blame for my poor run times and an extra 5 pounds around my midsection. Unfortunately, their donuts are some of the best Ohio has to offer!