Tags: GOP2016 | John Kasich | Ohio | Tax Cuts | Republicans | 2016

Ohio GOP Gov. John Kasich Pushes Tax Cuts of $500M

Image: Ohio GOP Gov. John Kasich Pushes Tax Cuts of $500M
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By    |   Monday, 02 Feb 2015 11:47 AM

Ohio Republican Gov. John Kasich, with his eye on a 2016 run for the White House, sent a budget proposal to his state's Legislature on Monday that promises $500 million in tax cuts for small businesses and individual taxpayers, especially those earning less than $80,000 per year.

However, the budget is likely to encounter trouble among the state's Republican-dominated Legislature, whose members prefer to see cuts in government spending pay for the cuts, rather than increases in other taxing methods, which dissatisfied GOP legislators refer to as "tax shifting," Cincinnati.com reports.

Kasich's proposed budget calls for eliminating tax on income from small businesses with less than $2 million annual gross receipts, and slashing income taxes for all taxpayers by 15 percent this year and 23 percent over two years, dropping personal income tax to 4.1 percent by 2016, The Wall Street Journal reports.

It would nearly double the personal income tax exemption, from $2,200 to $4,000, and from $1,950 to $2,850 for those earning $40,000-$80,000 per year.

Kasich's plan calls for paying for those cuts by upping the $2.25 per pack cigarette tax by $1 more, taxing oil and gas fracking at 6.5 percent at the wellhead, and increasing sales taxes, while larger businesses would see a jump in commercial activity tax to a .32 percent rate from .26 percent, the Times reports.

Under the Kasich plan, if passed, Ohio smokers likely will be driving elsewhere to buy their cigarettes, since Kentucky charges only 60 cents in state tax and Indiana just a dollar.

Last year, a 60-cent increase was proposed and it was killed by Republicans, the Mansfield News Journal reports.

Legislators from both parties already have assailed Kasich's 2,000-page budget plan.
Rep. Denise Driehaus, D-Clifton, told Cincinnati.com, "We're tired of the tax shifting. It's a shell game. Services need to be paid for and we want everyone to pay their fair share.

"The reduction in the income tax has created a situation of imbalance, because it impacts lower-class and middle-class people and it hits them harder than the wealthier among us."

House Speaker Cliff Rosenberger, a Republican, told Cincinnati.com, "The House will not accept tax shifting. We just won't do it." And Senate President Keith Faber, also a Republican, said, "The Senate will not consider a tax reform plan that does not take a significant amount of revenue off the table for the state."

Government spending jumped from $57.9 billion in 2011-12 to $61.2 billion in the fiscal year ending in June, OhioCheckbook.com notes.

Meanwhile, a Des Moines Register/Bloomberg Iowa poll finds Kasich near the bottom of Republican presidential contenders.

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Ohio Republican Gov. John Kasich, with his eye on a 2016 run for the White House, sent a budget proposal to his state's Legislature today which promises $500 million in tax cuts for the state's small businesses and individual taxpayers.
John Kasich, Ohio, Tax Cuts, Republicans, 2016
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2015-47-02
Monday, 02 Feb 2015 11:47 AM
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