COLUMBUS, Ohio – The state’s budget director is slated to discuss the governor’s two-year spending proposal before a legislative panel as Ohio lawmakers delve into the plan.
EXTRA: Budget highlights
Budget director Tim Keen and legislative analysts are scheduled to testify before the House Finance and Appropriations Committee on Tuesday.
Kasich wants to eliminate the tax on income for small businesses with annual gross receipts of $2 million or less and boost the state’s sales and cigarette taxes. The governor also has proposed bumping up the personal income tax exemption for low- and middle-income workers.
“It’s a sweeping budget,” Kasich said during a press conference Monday afternoon. “It’s a pretty amazing proposal that was put together by a great team.”
If the budget passes, Kasich said it “could not only be a new day for Ohio, but potentially a new day for America.”
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Ohioans would pay a half-cent more in state sales tax and have it apply to more areas – an increase of nearly $1.5 billion – under Gov. John Kasich’s proposed $72.3 billion two-year budget, according to a report in the Columbus Dispatch.
But a 23-percent income tax cut combined with other tax increases shakes out to a net $500 million tax cut.
The Blueprint for A New Ohio would trim Ohioans’ income taxes by 15 percent this year and 8 percent next year. The new top tax rate would be 4.1 percent, compared to 5.9 percent when Kasich took office.
He also wants to means-test several income-tax loopholes for those making more than $100,000 a year, which would mean an increase of about $167 million for those taking credits for Social Security, retirement and the senior credit.
Along with the increase in Ohio’s 5.75 sales tax rate, it would now be assessed on cable TV, parking and travel services, lobbying, public relations and debt collection districts, and exemptions would be reduced for used car and watercraft trade-ins.