Democrats have solution to budget costs -- April 18, 2001

Ohio Democrats say they may have a solution to ease budget cuts the state is facing. It's called the "value added tax", and it would apply to consumers. All products made in Ohio would be taxed 1/2%, even those sold out of state.

Representative Peter Lawson Jones is a proponent of the measure. He says "That tax, if passed on the consumer would be paid largely by those outside of Ohio as opposed to Ohians. If we can get twice what we pay from the outside. I think you have to explore that. But what happens when you say no new taxes, even thoughtful, intelligent less painful taxes don't receive any consideration."

Jones also says the "value added tax" could help fund areas like education and health. But Republicans have vowed there will be no new taxes in Ohio. Legislators have until June 30th to determine Ohio's budget for the next fiscal year.