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Gov. Kasich's tax plans at an impasse

Lawmakers are considering paying for the governor's income tax cut by wiping out current tax credits, NOT by expanding sales taxes

Bill Cohen
In The Region:

The proposal from Gov. John John Kasich to expand Ohio's sales tax may be pretty much dead, but his proposal to slash the graduated state income tax 20 percent for families and 50 percent for small business remains alive.

Ohio Public Radio’s Bill Cohen has the latest from a key state legislator.

Bill Cohen - tax plan impasse

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Gov. Kasich wants a net $1.4 billion tax cut paid for mostly by applying a 5 percent sales tax to about 80 services. 

House Finance and Appropriations Committee Chairman Ron Amstutz (R-Wooster) says a sales tax expansion would hurt businesses too much because they spend a lot of money on those services - advertising, management consulting, property leasing, and more.

Amstuzt insists lawmakers may still be able to pay for a decent sized income tax cut by wiping out current tax credits. The Ohio House and senate face a July 1st deadline to fashion a new two-year state budget and a way to pay for it.

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