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Republican Leaders Agree To Larger Income Tax Cut
By: Associated Press
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Ohio Republican leaders have agreed to a larger statewide income tax cut as part of a package of changes to be included in the budget.
Senate President Keith Faber said Thursday that Ohioans would see a gradual income tax reduction over three years, beginning with an 8.5 percent cut in the first year. The proposal also gives small businesses a break and increases the state sales tax from 5.5 percent to 5.75 percent.
Lawmakers are working to finalize Ohio's next two-year budget. They face a June 30 deadline to pass the almost $62 billion spending plan.
The House and Senate have separate tax proposals that must be reconciled. The Senate dropped a 7 percent statewide income tax reduction passed by the House in favor of small-business exemptions.