Governor Kasich’s budget: A Tax Shift
Ohio faces serious challenges, like the opiate epidemic, that call for serious investments. College affordability, aging infrastructure, and early education are all pressing needs if we’re truly focused on building for Ohio’s next generation.
Yet again, this budget has a major tax shift and little of anything else. States like Kansas have made it clear: tax shifts aren’t a cure-all and hamper our ability to make needed investments. It’s time to move on.
The Ohio House Finance Committee heard testimony from the administration and other officials, and is now beginning sub-committee work on specific areas of HB49 (The Budget).
Here is how the Tax Shift plays out by the numbers:
Income tax cut – accomplished by restructuring Ohio’s tax brackets: $3.1 billion
This will be largely be paid for by increasing other taxes.
Sales tax increase from 5.75% to 6.25%: $1.48 billion
Expand sales tax (at the higher rate) to some services: $371 million
Increase tax on tobacco and other smoking products: $658 million
Create severance tax: $447 million
And other changes for a net tax cut around $39 million over the two years.
This budget will cut funding for about half of Ohio school districts and it has no new investments for housing, hunger, or to reduce poverty. It also does little to address the opiate epidemic in Ohio.