Kasich pushes for support on income tax cut plan - WFMJ.com News weather sports for Youngstown-Warren Ohio

Kasich pushes for support on income tax cut plan

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YOUNGSTOWN, Ohio - Ohio Governor John Kasich isn't backing down on a tax cut proposal as he pushes to spark job growth and make Ohio more appealing to businesses.

Kasich wants to lower income taxes by 20 percent for working Ohioans and cut income taxes for businesses on their first $750,000 of earnings.

In 2012, the Tax Foundation reported Ohio was the eighth highest for state and local income taxes.

Kasich says that rate is still too high.

"We want to cut our income tax, because it's one of the highest and you're not competitive when your taxes are too high," Kasich told 21 News.

To replace revenue from his proposed the tax cuts, Kasich wants to broaden the sales tax base and cut the sales tax rate by half a percent.

Services subject to the tax would include haircuts, admissions to entertainment and sporting events, legal services and realty services.

The Ohio Association of Realtors tells 21 News the proposed tax would add about $633 to closing costs on the sale of a $125,000 home.

Tod Porter is the chair of Youngstown State University's economic department. The professor says that plans similar to Kasich's have historically shown that lower incomes earners end up feeling the greatest pinch.

"Middle and lower income individuals are going to be paying a larger share of the tax, because they tend to spend more on things that are going to be subject to the sales tax, whereas with the income tax, you're tending to collect more money from higher income groups," Porter said.

Kasich says he's not certain how much support he'll gain on his plan, but he urges legislators to remain focused on creating jobs.

"I don't know where the legislature's going to come down on this, but I know this, our income tax is too high and we need to do everything we can to help small businesses," Kasich said.

Earlier this month, the Associated Press reported the governor had "critical words" for the Ohio Chamber of Commerce, after he learned the organization criticized his tax plan.

A call to the Ohio Chamber of Commerce by 21 News Monday was not returned.

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