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Gov. Kasich pushes his tax package to a less conservative NE Ohio -- again


Web Editor
M.L. Schultze
In The Region:
Ohio Gov. John Kasich pushed his budget at the City Club of Cleveland today amid growing signs that it will have a hard time even in a Legislature dominated by fellow Republicans. Several key pieces of the governor' two-year spending plan appear to be in trouble, including a proposal to overhaul education funding and plans to accept federal Medicaid money to expand health benefits for poor people. But his biggest problem so far is with his plan to extend a 5 percent state sales tax to dozens of new services in order to pay for a cut in the state income tax and in taxes on small businesses. Kasich says Ohio has accumulated a healthy rainy day fund, but needs more.
KASICH: Can pay for one but not the other

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“We have $700 million in savings that can provide my small business tax cut proposal without any tax reform. The question is how much tax reform can we have to effect that income tax  and bring it down so that we  so that we can … compete with our surrounding states.”

 Some Republican lawmakers also are fighting the governor’s proposal for a slight increase in taxes on oil and gas drilling.Democrats are a small minority in both houses of the Legislature. They have expressed different reservations about the sales tax extension.  
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