GOP leaders to unveil tax package in Ohio budget COLUMBUS: Republican majority leaders in Ohio have reached an agreement over taxes in the state budget and were expected to release the details of the package on Thursday. The two chambers of the legislature have separate tax proposals that must be reconciled, among other budget differences. The Ohio House had retained 7 percent of the 20 percent permanent income tax cut originally proposed by Republican Gov. John Kasich. The state Senate took a different route. Senators chose to restore a small business benefit, which Kasich had also pitched in his budget. That proposal would allow individuals to deduct up to $375,000 in net annual business income for income tax purposes. The Senate tax break is worth roughly $1.4 billion, compared with the roughly $1.5 billion price tag for the House’s income tax plan. A conference committee of six lawmakers — three from the House and three from the Senate — has started hashing out the differences between the two chambers’ spending proposals. House Finance Chairman Ron Amstutz, a Republican on the panel, has said lawmakers were considering a “more modest blending” of the two plans. Both chambers’ versions of the budget also had omitted Kasich’s proposed tax increase on high-volume oil and gas drillers and his plans for extending the state sales tax to professional services including those provided by legal, accounting and lobbying firms. State lawmakers face a June 30 deadline to pass the $61.7 billion, two-year state budget. A new fiscal year begins July 1. The conference committee was expected to vote on a compromise budget bill early next week. Ohio Budget Director Tim Keen told the panel this week that the state should have almost $397 million in uncommitted funds at end of the current budget year. The governor has said he wants any extra money returned to taxpayers. Kasich, who is up for re-election next year, had campaigned in 2010 on a pledge to reduce Ohio’s income tax. Senate Democrats said Thursday they would rather see the uncommitted surplus money invested in early childhood education.
Posted on: Thu, 20 Jun 2013 17:31:35 +0000
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