The Ohio Senate’s version of the state’s biennial spending bill wants to cut more taxes than the House of Representatives’ bill proposal.
Ohioans would receive $300 million in annual tax cuts, according to Senate President Larry Obhof. This is up from the House’s bill, which included $100 million in yearly tax cuts.
In the proposed tax cuts, the Senate wants to give Ohioans a sweeping eight percent income tax cut for two years. Obhof believes the eight percent tax cut will offset the gas tax Ohioans will start paying on July 1.
@OhioSenateGOP President @LarryObhof and Finance Chair @ElectMattDolan highlight Senate's budget, that it's your money first, not the government's money. 8% across the board tax cuts, remove bottom 2 brackets to help hard working families, restores tax relief to small businesses. pic.twitter.com/Ft6H8hYwPj
— John Fortney (@johnfortney) June 11, 2019
The Senate also wants to keep tax cuts for businesses as they are. The House version of the bill wants to lower the threshold for non-taxable income to $100,000, but the Senate thinks it should stay at $250,000, meaning businesses don’t have to pay taxes on the first $250,000 of income.
Additionally, in the Senate’s proposal, entities that make more than $250,000 would get a 40 percent tax break.
“By maintaining Ohio’s business investor deduction (BID) in their revisions to Ohio’s operating budget, the Ohio Senate has shown their faith in the small business community,” said Roger Geiger, vice president and executive director for the National Federation for Independent Business in Ohio.
The Senate’s proposed business tax cut is at odds with Gov. Mike DeWine’s original proposed budget. DeWine did not want any changes to Ohio’s taxes but instead called for more investments in state programs.
“I think that where the economy is right now, and where the state is fiscally right now, we have the opportunity to both make historic investments in a lot of these areas, as the governor did and as the House did, and provide tax relief to the hard-working men and women of Ohio,” Obhof said.
The Ohio Senate proposed increasing educational opportunities for families in Ohio by expanding the “Ed Choice” scholarship program, which allows parents to send their children to the school that best meets their needs. The scholarship program would apply to K-12 students.
“Senate President Larry Obhof is leading the way to provide Ohio students more opportunities to succeed,” said Aaron Baer, president of Citizens for Community Values. “The proposed budget the Senate introduced today ensures Ohio’s public schools can thrive, while opening up doors of opportunities for families to find the best school that meets their needs.”
– – –
Zachery Schmidt is the digital editor of Battleground State News.
Photo “Larry Obhof Press Conference” by John Fortney.