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Ohio GOP Senate leaders propose income tax cut from projected Medicaid expansion savings
Reported by: Associated Press
Reported: Saturday, October 26, 2013 11:08 AM EDT
Republican leaders in the Ohio Senate want savings from a Medicaid program expansion to finance a 4 percent state income tax cut.
According to the measure, an Ohio resident making $40,000 per year would see a cut of about $38 under 2014 individual income tax rates.
Ohio Senate GOP spokesman John McClelland says the proposal reflects projected savings from reduced hospital payments and many state prisoners now qualify for Medicaid.
McClelland tells The Northeast Ohio Media Group the state will collect in additional sales-tax revenue and additional federal reimbursements for some previously ineligible enrollees.
The left-leaning Policy Matters Ohio says such a tax cut would mostly go to affluent Ohioans while other important needs are left unmet.
Information from: The Plain Dealer, http://www.cleveland.com