Fireworks, flat tax among budget proposals

COLUMBUS, Ohio – Ohioans would no longer have to lie about their intention to shoot off fireworks, and lawmakers will begin studying how to move Ohio to a flat income tax under a widespread list of budget changes made by Senate Republicans Tuesday.

READ MORE: In the Columbus Dispatch

It took 17 single-space pages just summarize all the changes, which were accepted by the Senate Finance Committee. The committee is hearing from more than 150 witnesses over the next three days, preparing for a final chamber vote next week.

Though it would still be illegal to shoot off fireworks in Ohio, a new budget provision would no longer require Ohioans to sign a form when purchasing fireworks vowing they will take the products out of state. It is well known by consumers and lawmakers that people regularly lie on the forms without consequence.

Senate leaders on Monday rolled out some of the budget highlights, including a $1.7 billion net tax cut and a two-year tuition freeze at state institutions.

Tuesday they unveiled the full, widespread list of changes that eliminate a number of House-added earmarks, such as money for the Childhood League Center in Columbus, and adds back some Senate spending proposals.

The House-passed budget included a new commission that would study Ohio taxes and make future recommendations. Senate leaders added a requirement that the commission recommend how to transition Ohio’s income tax rate to a flat 3.5 percent or 3.75 percent by 2018.

Ohio currently has nine tax brackets and the vast majority of tax filers already pay an effective tax rate of less than 3.5 percent. The move was quickly drawing criticism from progressive groups who say such a plan would lead to tax increases on many lower- and middle-class Ohioans, while granting significant tax cuts to the wealthy.

The bill does not alter the controversial Medicaid expansion, but Senate Republicans are transferring $200 million in health care funds to a new line item – money that includes the state share of the expansion in 2017.