Tax Day: Breaking down what your Ohio and federal taxes pay for

Ohioans paid $28.2 billion in taxes in 2018

Tax Day: Breaking down what your federal taxes pay for

CLEVELAND, OH (WOIO) - Today is the deadline to file your state and federal income tax forms with the state of Ohio to determine if you paid too much or too little in 2018.

It’s time to ask, “What did my taxes just pay for in 2018?”

Tax Day: Breaking down what your state taxes pay for

State of Ohio taxes:

The Ohio Department of Taxation (ODT) is responsible for collecting taxes for all Ohioans and then distributing them to the to the Office of Budget and Management (OBM).

According to the ODT, here are the taxes collected over the past five years which include all income taxes as well as state and local sales tax:

  • 2018 - $28.2 billion
  • 2017 - $27.8 billion
  • 2016 - $27.6 billion
  • 2015 - $27.6 billion
  • 2014 - $26.0 billion

How that money is spent is up to the legislature, who determines and votes on the state’s budget and how much money goes to each department.

According to the OBM here is the breakdown of where your money goes:

This is the breakdown of where your tax dollars go after you pay your taxes. The two biggest areas are education and Medicaid.
This is the breakdown of where your tax dollars go after you pay your taxes. The two biggest areas are education and Medicaid.

We asked the OBM what “general revenue distributions” and “general government” represent and we’re told:

  • General Revenue Distributions are the payments the state makes to local governments and school districts for the 10% property tax rollback, the 2.5% home owner property tax roll back and the homestead tax exemption. (Essentially a portion of property taxes are subsidized by the state government)
  • General Government are the agencies that don’t fit in the other categories. Examples include the Department of Administrative Services, Department of Taxation, the Office of Budget and Management and the Statewide elected offices. One way to look at it is they are the backbone of other government agencies or the machinery of government.

Federal taxes:

The distribution of federal tax also has to be confirmed by Congress and specifically designated how much each department receives.

The overwhelming majority goes to the Department of defense which pays the salaries of the men and women of the military and all equipment.

This is a breakdown of the proposed 2018 U.S. budget which is where your tax dollars are used for.
This is a breakdown of the proposed 2018 U.S. budget which is where your tax dollars are used for. (Source: Wikipedia)

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