Yet the recently unemployed pay state income tax on their benefits
A bill pending in the Ohio Senate Ways & Means Committee would create a major new tax break for some Ohioans who make more than $250,000 a year, while leaving the state income tax as is on unemployment compensation (UC) Ohioans received last year. That’s what Zach Schiller, research director of Policy Matters Ohio, said in written testimony about Senate Bill 18 to the committee today.
“Do you want to allow Ohioans to be blindsided by a tax on UC benefits they can ill afford, while you legislate a windfall to some of our most affluent residents?” Schiller asked the committee. “Instead of providing new tax cuts for well-to-do Ohioans by passing SB 18 as is, you should decouple Ohio from federal tax law. At the same time, you should part ways with federal tax policy and end or at least reduce taxation of unemployment benefits.”