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Economy and Business

Gov. Kasich's budget cuts income taxes but raises others
Kasich says services like haircuts, cable tv and movie tickets would be subjected to expanded service tax

Bill Cohen
In The Region:

Governor John Kasich is pushing a $1.4 billion overall tax cut for Ohioans over the next three years, a move he says would attract more companies and jobs. It would come in the form of a huge cut in the state income tax. Statehouse correspondent Bill Cohen reports on how the governor intends to pay for it.

Cohen on the sales tax hike

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Among the services that would be taxed for the first time are advertising, lobbying and architects. But also things that average folks often use. Gary Gudmunson of the Ohio Tax Department lists them.

“Pet grooming, cable television, movie theater tickets, haircuts, sports event tickets, bowling.”

Barbers, theater owners and cable TV companies have wasted no time criticizing the sales tax broadening as unfair. But even before that criticism, Gov. Kasich was calling them special interests.

“They will come to the legislature and they will pound on people. When they win, the people of the state lose.”

Because as Kasich reasons, if his sales tax broadening is killed, Ohio cannot afford the much bigger cut in the state income tax. A cut he says is a key to attracting more companies and their jobs.

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