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Kasich hopes to offer another tax cut
By Marc Kovac
COLUMBUS
Gov. John Kasich hopes to offer another income-tax cut as part of his next two-year budget proposal.
The cut would be in addition to a decrease tied to an increase in taxes on oil and gas produced through horizontal hydraulic fracturing, or fracking — a plan that stalled in the Ohio House after Republicans in the chamber said they wanted more time to consider the severance-tax modernization as part of a larger reform package.
Kasich, long an advocate for reducing or eliminating Ohio’s state income tax, was mum on details for the new plan, saying specifics were still being worked out. But he told an audience attending a press conference announcing a Columbus business expansion that an income-tax cut would be included.
“We’re always working to figure out how to lower the income tax,” he told reporters afterward. “It will involve tax reform, but I’m not going to tell you what I’ve got until I know exactly what I have.”
He added, “A 5.9 percent income tax is ridiculously high for our state. You add in the local income tax, and it is a tremendous impediment to business growth, to job creation. So we have to always work to get this done.”
The tax-cut proposal adds to what already was expected to be a hefty budget bill, which is to include school-funding reform. Kasich’s severance-tax increase/ income-tax cut likely could end up in the Legislature next year, as well, if lawmakers postpone action during the post-election lame-duck session.
Kasich said Tuesday he expects opposition to additional tax cuts. Democratic lawmakers have been vocal in their calls for increased fracking taxes and other state collections to be earmarked for schools and local governments to help offset cuts they experienced in the last budget cycle.
“There will be a lot of squeals and a lot of howls from people that want to be for the status quo, but the status quo is not acceptable in Ohio,” Kasich said.