taxation Possible changes

Possible scenarios for raising taxes and making service cuts in Ohio’s two-year budget that starts July 1:

POTENTIAL TAX INCREASES:

Increasing the sales tax by a half-cent would raise an additional $600 million a year; raising it by a cent would raise $1.2 billion a year.

For each percentage point reversed in the 21-percent reduction of income taxes phased in since 2005, the state would gain about $100 million in revenue a year.

Suspending all the income tax changes for two years would net the state about $900 million total.

POTENTIAL SERVICE CUTS:

A $14 million expansion of health insurance for low-income children.

A planned tuition freeze for an additional year at Ohio’s four-year colleges and universities.

Child welfare programs administered by county agencies.

Planned increases in funding for K-12 education.