What do a pack of smokes and kids have in common? 🤔 They both drain your wallet and leave behind a signature stench? Close, but no cigar. 🙃
Ohio’s Governor DeWine just proposed a brand new child tax credit for Buckeye State families. If it passes, smokers would foot the bill. 🚬 We’ve got all the smokin’ hot details right here!
Here’s Five Fast Facts on the proposed child tax credit:
- 👨👩👧👦 Credit Check - While the federal government already has a $2k per child tax credit in place, Gov. DeWine is proposing a state-based tax credit as well. To qualify, you must be the parent of a child/children aged 6 and earn less than $94,000 annually as a married couple filing jointly. Single parents who earn up to $69,000 would also qualify as well as married couples who file separately and make $56,500 and under.
- 🔢 Mommy Math - The credit would work to give more money back to parents through a 5% credit based on annual income, up to $1,000 per child. If the credit exceeds what you owe in state taxes, you could get a refund (as long as you earn at least $22,500 annually.
- 🚭 Puff or Pass? - For the 2026 fiscal year, Ohio’s Office of Budget and Management estimates a cost of $450 million. DeWine’s grand plan to cover these costs? Doubling the state tax on cigarettes. His proposal is to raise taxes from $1.60 to $3.10 per pack. He also recommends raising wholesale taxes on other tobacco products from 17% to 42%.
- 💰 Stacks on Tax - How much money would the increase in cigarette taxes bring in? An estimated $1.1 billion each year (not too shabby). That’s 58% more than 2025’s revenue projections.
- 😶🌫️ In a Chokehold - Critics say the raised cig taxes would hurt lower income people the most, since they make up the majority of smokers. Under the tax raise, a pack a day would cost a smoker an extra $547.50 in taxes alone.
🔥Bottom line: DeWine’s new idea sure is a smoking gun. An extra five hundo a year in cig taxes would give our wallets the black lung. If passed, Ohio families would get an extra boost, but smokers might be forced to give up their habit. Working hard to get that 850 credit score? Well, you don’t have to be so perfect. Check out this article for more on why!
Do you think smokers should foot the bill for this new tax credit?
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