Portion Of Kasich’s Proposed Income Tax Cut Survives House Budget Plan

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The Ohio House has preserved a portion of the statewide income-tax cut proposed by Gov. John Kasich in its version of the state operating budget, marking a partial victory for the Republican governor.

House budget changes released Tuesday included a 7-percent income tax reduction over two years. That compares to a 20-percent reduction over three years that had been proposed by Kasich. The governor accompanied his cut with a 50 percent tax cut for small businesses.

Kasich wants to reduce Ohio's income tax, which he views as economically burdensome.

The governor's $63.2 billion, two-year budget paid for the cut with a tax increase on oil and gas extraction. The House has pulled that proposal, along with Kasich's proposed expansion of the sales tax to professional services.