Ohio tax cuts

a photo of Ohio House Speaker Larry Householder
KAREN KASLER / STATEHOUSE NEWS BUREAU

The six lawmakers working out the hundreds of differences between the House and Senate versions of the budget are facing a really big one right off the top – a major split over tax cuts. 

The House budget cuts income taxes by 6.6 percent and drops the $250,000 small business tax deduction to $100,000. The Senate budget restores that deduction and cuts taxes by 8 percent.

photo of House Finance Committee
KAREN KASLER / STATEHOUSE NEWS BUREAU

There have been tax cuts in nearly every state budget since 2005. But Governor Mike DeWine has said now is the time to invest in Ohio, so there are no tax cuts in his budget. Some on the panel that makes changes to the budget are considering whether a tax cut can or should be included.

Picture of Larry Obhof
JO INGLES / STATEHOUSE NEWS BUREAU

State lawmakers are now considering an 18 cent per gallon increase in the gas tax proposed by the administation of Gov. Mike DeWine. It would plug a hole of more than a billion dollars in the Department of Transportation’s budget. But one legislative leader said they’re also looking for ways to cut taxes – again.

Photo of PUCO chair Asim Haque
ANDY CHOW / STATEHOUSE NEWS BUREAU

Corporations are seeing big savings as the effects of the large federal tax cut take place. Now state energy regulators want to see if Ohio’s major utilities are going to pass those savings on to the ratepayers. It’s unknown whether the corporation tax cuts will result in lower electric bills.

The Public Utilities Commission of Ohio has opened up hearings to find out if utilities should decrease electric bills based on the money they’re getting from the big corporate tax cut.

Photo of Gov. John Kasich.
Karen Kasler / STATEHOUSE NEWS BUREAU

While members of the House say the state budget they passed is balanced, senators are worried they’re going to have to cut as much as $400 million from it. One research group is hoping lawmakers will look at closing some tax breaks before taking an ax to state programs.

photo of Tim Keen
OHIO OFFICE OF BUDGET AND MANAGEMENT

Last month, Gov. John Kasich has warned that a tough budget process is ahead. But other state officials have questioned his use of the word “recession” and have said they think the state’s economic situation is strong. Statehouse correspondent Karen Kasler sat down with the state budget director to talk about what’s coming in the budget.