Senate Democrats want tax reform to be included in budget proposal

The Democrats want to increase the corporate minimum tax by $250.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- Reform of Ohio's tax system has to be a part of the Senate's version of the new two-year state budget if Democrats are to vote for it, the Senate's top Democrat says.
"This is a tax equity issue here," Senate Minority Leader Gregory L. DiDonato said Wednesday."
Majority Republicans have said revising the state's tax structure might be too big of a task to do in the new two-year state spending plan that's to be in place by July 1.
The GOP controls all branches of state government, including a commanding 22 to 11 edge in the Senate.
But a provision in the House-passed, $48.7 billion state budget proposal that calls for a temporary 1-cent increase in the state sales tax could mean that GOP leaders could need Democratic votes to approve a bill.
DiDonato said the state could resurrect proposed tax reforms first offered by Republican Gov. Bob Taft in his original $49.2 billion, two-year budget proposal. Many of the reforms were not included in the budget the House passed in April.
Reviving proposals
Among the proposals DiDonato said could be resurrected include increasing the minimum corporate net-income tax from $50 to $300 and limiting the 10 percent and 2.5 percent property-tax rollbacks to homes valued under $1 million.
DiDonato said he would also like the GOP to consider including in the budget bill Democratic proposals related to education and social services and also a bill sponsored by Democratic state Sen. Robert F. Hagan of Youngstown that would have the state negotiate reduced prescription drug prices for the uninsured or underinsured.
Senate President Doug White, a Manchester Republican, said majority Republicans could end up trying to address the minimum corporate net-income tax in their version of the budget.
But White said he's open to considering other ideas.
White said he believes he has a solid base of GOP votes on the budget bill. White said even if he has enough Republican votes to pass the budget, he still wants Democratic involvement.
"Even if we have the votes, I'm not wanting to shut them out," White said.
Plans call for the Senate Finance and Financial Institutions Committee to unveil its version of the two-year spending plan next week. Committee and full Senate consideration could come in early June.
House plan
The House-passed plan is financed through a proposed temporary penny sales tax increase.
Under the House-passed plan, if voters approve in November a proposal to place video slot machines at the state's 7 horse-racing tracks, the sales tax would end after the budget's first year.
If voters were to reject the proposal, the sales tax would continue into the second budget year.
Estimates say the proposed sales tax boost would generate $1.3 billion annually. Video slot machines would generate about $500 million.