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Economy and Business


Lawmaker says Ohio can lower income taxes without expanding sales taxes
State Rep. Peter Beck says Kasich and lawmakers can find a happy medium

by WKSU's STATEHOUSE CORRESPONDENT BILL COHEN


Reporter
Bill Cohen
 
Ohio Gov. John Kasich
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In The Region:

A key Republican legislator says Ohioans could still see a major cut in the state income tax, even though lawmakers are balking at Gov. John Kasich’s idea to pay for it with an expansion of the state sales tax.

GOP Rep. Peter Beck chairs the tax-writing committee in the Ohio House. He confirms that majority Republicans worry that applying a sales tax to about 80 new services could hurt businesses and the economy — and that’s why legislators may take the sales tax expansion out of a proposed two-year state budget.

In an interview with statehouse correspondent Bill Cohen, though, Beck is quick to add that Republicans are looking at alternative ways to pay for the governor’s proposed $1.4 billion tax cut.

Hear Cohen and Beck talk about tax expansion

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Beck says there’s money in the state's rainy day funds -- some of which could go toward a 20 percent income tax cut for families and 50 percent for small businesses.

He says the state also might consider curtailing some tax credits to help underwrite the income tax cut. 

“That is still the goal to have a significant tax reform package for the taxpayers, the individuals and businesses in the state,” Beck says. “We are one of the highest tax states in the nation, and we need to be more competitive to attract jobs, to obtain jobs and bring investments to our state.”

He says growth in employment and payroll taxes will also help fund the tax cuts that Gov. John Kasich is championing.

Beck chairs the Ohio House Ways and Means Committee and he’s also on the House Finance Committee. Those two panels will help shape the final tax package that the full House of Representatives will have to pass by June 30.

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