COLUMBUS, Ohio – Statehouse Republicans unveiled a tax reform package they claim will provide nearly $2.6 billion in relief over the next three years by reducing personal and business income tax rates.
Leaders of the House and Senate released their plan last Thursday to slash income taxes by nearly 18 percent over two years and whack small business taxes in half.
House Speaker William Batchelder (R-Medina), Senate President Keith Faber (R-Celina), House Finance and Appropriations Committee chair Ron Amstutz (R-Wooster) and Senate Finance Committee chair Scott Oelslager (R-North Canton) took the wraps off the package, part of their two-year budget plan, which includes reductions in the personal income tax rate of 8.5 percent in the 2014 fiscal year, 9 percent the following year and 10 percent in 2016.
The proposal also includes a 50 percent small business tax cut.
They’re making up the difference with a quarter-percent hike in Ohio’s sales tax from 5.5 to 5.75 percent.
Lawmakers must pass the budget by Sunday.
The plan also includes taxes on Internet sales and products delivered electronically, expanding the Homestead Tax Exemption to seniors who earn less than $30,000 and eliminating the gambling loss deduction.
Both the House and Senate Ways and Means Committees will review the proposals.