Kasich tax plan for Ohio faces legislative hurdles - 21 News Now, More Local News for Youngstown, Ohio -

Kasich tax plan for Ohio faces legislative hurdles

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COLUMBUS, Ohio (AP) - The moment of reckoning has arrived for Gov. John Kasich's tax plan.

The Republican governor proposes lowering Ohio's income tax by 20% and reducing the rates on consumer sales and small businesses.

But he does so with a pair of increasingly unpopular actions: raising the severance tax on large-scale oil and gas drilling, and applying reduced sales taxes in new areas including for lawyers, accountants, amusement parks and concerts.

Ohio House Speaker William Batchelder and Senate President Keith Faber, both Republicans like Kasich, signaled this week the plan is faltering and urged supporters to come forward. That increases the stakes at state budget hearings resuming Tuesday.

Kasich's spokesman says legislative changes to the governor's plan were expected and Kasich sees strong agreement for tax cuts to help create jobs.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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