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Economy and Business

Rebublicans are looking for alternatives to sales-tax broadening
Some GOP members are happy only with certain parts of the tax-shift proposal

Bill Cohen

With a June 30th deadline approaching, that proposal from Gov. John Kasich for a massive tax cut and tax shift is in limbo in the Ohio House of Representatives.

Several committees and sub-committees have heard testimony on two major parts -- a big cut in the state income tax and an expansion the state sales tax to include about 80 services ranging from haircuts to cable TV to movie tickets and parking garages.

The dilemma for majority Republicans is – business groups like the Ohio Chamber of Commerce and the National Federation of Independent Business are balking at endorsing the sales-tax part, even though it’s linked with the income tax cut. Republican leaders issued a statement Friday, trying to get support for a total package, not just individual parts.

Here is the spokesman for House Republicans, Mike Dittoe, being interviewed by statehouse correspondent Bill Cohen.

Rebublicans looking for alternative to sales tax broadening

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That’s Mike Dittoe, speaking for majority Republicans in the Ohio House. They like Gov. Kasich’s proposal for a 20 percent cut in the state income tax, with an extra 50 percent cut for small businesses. But the Republicans are balking at endorsing Kasich’s main mechanism for paying for that tax cut,  applying a 5 percent sales tax to about 80 news services.

Minority Democrats oppose the income tax cut. They say it would mostly benefit the wealthy.

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