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Government & Politics

Kasich Proposes Withholding Less From Ohioans' Paychecks

photo of Gov. John Kasich
Ohio Gov. John Kasich says the state's projected surplus will be used to adjust withholdings from paychecks.

The state’s budget office is forecasting a surplus at the end of this fiscal year. Gov. John Kasich says he wants to take that extra money and adjust withholdings, resulting in more money in Ohioans’ paychecks.

The plan is a spinoff of a tax cut the Ohio Legislature passed three years ago. That 6.3-percent cut is reflected in the annual tax refund, but Kasich wants people to see that money sooner.

There’s an upfront cost to reducing the amount of money withheld from paychecks. Kasich wants to take the projected surplus and use it to adjust those withholdings.

“We’re not going to do this till November until I’m certain that we’re going to be in good shape on this, but this isn’t going to put anybody in any hole. This isn’t going to be like some Kansas deal where we just cut taxes and don’t pay for it,” Kasich said.

The change could mean Ohioans will see a smaller amount in their tax refund.

The administration wouldn’t say if they needed approval from lawmakers to move forward with this plan.