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Key Lawmaker: Services Tax Almost Dead, But Income Tax Cut Alive

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A key Republican Ohio legislator is hinting that even though a proposal from GOP governor John Kasich to expand the state sales tax is pretty much dead, his proposal to slash the graduated state income tax 20 percent for families and 50 percent for small business remains alive.

Monday, March 25, 2013 at 5:25 pm

State Representative Ron Amstutz chairs the powerful House Finance Committee that’s considering the governor’s proposal for a major tax shift and net tax cut. Kasich wants a net tax cut of $1.4 billion over three years, but it would be paid for mostly by applying a sales tax to dozens of services.

That second part has come under from Democrats, Republicans, and businesses as unfair. In an interview with statehouse correspondent Bill Cohen, Amstutz says the sales tax expansion would put an unfair burden on companies.

The full Ohio House and Senate must okay a tax shift package, if it’s to become reality -- and a July 1 deadline looms. That’s when a new two-year state budget is supposed to take effect.

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