News
News Home
Quick Bites
Exploradio
News Archive
News Channel
Special Features
NPR
nowplaying
On AirNewsClassical
Loading...
  
School Closings
WKSU Support
Funding for WKSU is made possible in part through support from the following businesses and organizations.

The Holden Arboretum

Metro RTA

Lehmans


For more information on how your company or organization can support WKSU, download the WKSU Media Kit.

(WKSU Media Kit PDF icon )


Donate Your Vehicle to WKSU

Programs Schedule Make A Pledge Member BenefitsFAQ/HelpContact Us
Ohio


Governor unveils Ohio's monumental tax shift
Income tax would go down, drilling taxes would go up and the sales tax would do a little of both
by WKSU's STATEHOUSE CORRESPONDENT BILL COHEN


Reporter
Bill Cohen
 
Gov. Kasich, Budget Director Tim Keen and Tax Commissioner Joe Testa explain the shift in what Ohio taxes and how much.
Courtesy of KAREN KASLER
Download (WKSU Only)
In The Region:

Gov. John Kasich is proposing a major shift in Ohio’s tax structure.

Under the plan he released today, billions of extra dollars would flow in from an expanded sales tax, but that would be more than offset by an even bigger lowering of the state income tax. And the overall sales tax RATE would come down.

Statehouse correspondent Bill Cohen helps us sort out the ups and downs in this report.

COHEN: Ohio's tax shift

Other options:
Windows Media / MP3 Download (4:05)


Ohio Gov. Kasich is proposing a net $1.4 billion tax cut over three years, much of it for small businesses.

“About 50 percent of the jobs in this state are created by small business,” Kasich said in announcing his budget. “And we want to do everything we can to encourage job growth in small businesses.”

Kasich plans to cut in half the income taxes for small businesses on their first $750,000 in earnings.

And he wants to cut income taxes for Ohio families overall – 20 percent over three years, plus a one-time 4 percent tax cut on this year’s taxes.

Kasich says none of that will cut into the state’s rainy day fund.

Sales tax becomes the big piece of the pie
And the governor also wants to cut the state’s sales tax rate from 5.5 to 5 percent.

He’d pay for the cuts with an increase in the severance taxes oil and gas drillers pay. And he would broaden the base of the sales tax to include many services that are now exempt.

Tax Commissioner Joe Testa says that makes sense as the sales tax has been shifting from goods to services for a while. Gov. Kasich says he wants to see it applied to “lawyers, architects, accountants and lobbyists.”

It also would apply to parking lots, arts, entertainment and recreation.

Still Kasich says his tax cuts far outstrip any hikes.

For decades, pie charts have shown the state income tax as the largest slice. But that would change if lawmakers adopt Kasich’s budget; the sales tax would become the largest.

Shifting the burden?
The liberal think tank, Policy Matters Ohio, says Kasich’s plan continues a long-time shift in taxes to the middle class.

“When we cut taxes in 2005, people in that top 1 percent, they got nearly 10 grand on average a year in a tax cut. The people in the middle got 180 bucks,” says Policy Matters’ Zach Schiller. “The fact is that when you cut the income tax -- because of its graduated rates -- the bulk of the savings goes to people who don’t need it, and (that) will further exaggerate the inequality that has been growing here as it has around the country.

But Ron Amstutz likes the changes. He’s the House Finance Committee chairman and, like Kasich, is a Republican. He calls Kasich’s plan one of the two largest tax reforms he’s seen in his 32 years as a lawmaker.

In 2009, when Kasich announced he was running for governor, he loudly proclaimed the need to do away with the income tax:

 “We march over time to destroy that income tax that has sucked the vitality out of this state.”

Add Your Comment
Name:

Location:

E-mail: (not published, only used to contact you about your comment)


Comments:




 
Page Options

Print this page

E-Mail this page / Send mp3

Share on Facebook




Stories with Recent Comments

HOF's Canton expansion could take an island and make it a village
I live in the block from Broad St to the Hall of Fame and will be impacted by the expansion. I am in the process of selling my home and planned to long before i...

Cleveland redeploys police to replace rejected red-light traffic cameras
Periodic rotational enforcement without warning does NOT change behavior and the city officials know that. This is the basis of all officer-run enforcement trap...

New enrollment period offers more insurance options
The removal of federal funding for healthcare CO-OPs may limit the growth of the CO-OP movement. http://www.healthcaretownhall.com/?p=6381

The family of Boardman vet killed in Vietnam receives his medals
My name is Mike Eisenbraun. I am Larry's brother. I was 14 years old when Larry was killed in Vietnam. He has been gone for 46 years but it seems like yester...

Cleveland seniors are creating new wealth -- and facing new challenges
Why is anyone surprised that we people over 65 are not retiring? If you have been paying attention, defined company funded pensions were phasing out in the eigh...

Ohio company cuts off a dairy supplier after allegations of animal abuse
these people should be held accountable for their actions. i would be more than pleased to see a year or more behind bars. i will NEVER eat anything that comes ...

Goodyear recruits thousands of vets
What a wonderful interview! Excellent reporting skills by a talented young reporter! I look forward to hearing more from Ms. Schley!

Ohio Democratic Party begins the rebuilding process
I agree 100% with Sen. Brown. I think it is absolutely critical for the Democratic Party in Ohio to engage in the long, tedious, hard task of re-building from t...

They're talking again in the Macedonia bridge dispute
Norfolk Southern says the Ledge road bridge meets regulations for train traffic, however it was built as an overpass for a roadway and/or farm usage. I think t...

Cleveland City Council to consider transgender public restroom law
this is sick. I do not want my daughter in the same bathroom as a perverted 45 year old man. this proposed legislation could seriously damage the security of ch...

Copyright © 2014 WKSU Public Radio, All Rights Reserved.

 
In Partnership With:

NPR PRI Kent State University

listen in windows media format listen in realplayer format Car Talk Hosts: Tom & Ray Magliozzi Fresh Air Host: Terry Gross A Service of Kent State University 89.7 WKSU | NPR.Classical.Other smart stuff. NPR Senior Correspondent: Noah Adams Living on Earth Host: Steve Curwood 89.7 WKSU | NPR.Classical.Other smart stuff. A Service of Kent State University