Cutting Taxes Through Tax Reform
Ohio's taxes are too high and the state relies too much on counterproductive tax methods such as the income tax. Creating a jobs friendly climate in Ohio means tearing down tax barriers that keep job creators from investing, expanding and hiring new workers. This is especially true for small businesses, which employ half of Ohio's private-sector workforce and pay personal income tax on their business earnings.
Two years ago in his first budget, Gov. John Kasich struck his first blow against Ohio's high taxes by cutting taxes $800 million by reducing the income tax and eliminating the Death Tax altogether. In this budget, Gov. Kasich builds on that progress with a $1.4 billion tax cut package (over three years) benefiting every Ohioan, regardless of their income. He calls for cutting taxes for small business owners in half on the first $750,000 of earnings, cutting the income tax by 20 percent, cutting the state sales tax rate from 5.5 to 5.0 percent and eliminating the severance tax altogether for small, conventional natural gas producers. At the same time, the Governor's proposal modernizes Ohio's tax code by broadening the sales tax base to include additional services and by raising the outmoded severance tax from 20 cents on a barrel of oil to 4.0 percent-still the lowest in the region.