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Economy and Business

Ohio's proposed budget includes both tax cuts and hikes
Lawmakers will decide if Ohioans see income tax cuts, sales tax changes, a severance tax hike and an expansion in the Medicaid program

Karen Kasler
Gov. John Kasich
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Gov. John Kasich's new two-year budget proposes both tax cuts and tax increases, as well as an expansion of Medicaid.

The $63 billion plan includes a 20 percent across the board income tax cut, as well as a 50 percent income tax cut for small businesses -- both would be phased in over three years. One way Kasich suggests paying for that would be to broaden the tax base by another 30 percent by taxing services that don't pay sales tax now.

Kasich unveils second budget

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“Lawyers, architects, accountants will have to pay. Some of them will absorb it internally; others will pass some of it on. Lobbyist, they’ll probably get that out of there, but they’re in there as well.”

But Kasich says the state sales tax will be cut from 5.5 percent to 5 percent.

Kasich also wants to increase the tax on big oil and natural gas drillers, an idea that some conservative lawmakers have opposed. He's also backing an expansion of Medicaid that could cover hundreds of thousands more Ohioans.

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