Tue. 3:10pm: Senate removes state income-tax cut from budget
COLUMBUS (AP) – State senators are pulling what’s left of Republican Gov. John Kasich’s proposed income-tax cut from the state budget for now in favor of tax relief targeted at small businesses.
The move by the GOP-led Ohio Senate’s Finance Committee comes as a blow to Kasich, who pledged to reduce Ohio’s statewide income tax if elected. The Ohio House had retained 7 percent of the 20 percent permanent income-tax cut originally proposed by Kasich.
The Senate instead restored a small-business benefit also proposed by Kasich, which allows individuals to deduct up to $375,000 in net annual business income for income tax purposes. Leaders said debate on income-tax breaks will continue.
The Senate tax plan is worth roughly $1.4 billion, compared with about $1.5 billion for the House plan.