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Gov. Kasich proposes new tax cut package

Associated Press • May 21, 2014 at 6:00 AM

As he heads into a fall re-election bid, Ohio Gov. John Kasich is proposing a package of new tax cuts developed in cooperation with fellow Republicans in the state Legislature.

Kasich proposes accelerating a planned 10 percent income tax reduction by six months, reducing withholding rates on the final 1 percent in July rather than December. He would also boost small business income-tax reductions to 75 percent from 50 percent for tax year 2014.

Changes also would double Ohio's earned income tax credit from 5 percent to 10 percent for low-income taxpayers and increase personal income-tax exemptions for Ohioans making under $80,000 a year.

The estimated $402 million in cuts were being woven into one of four midterm budget bills making their way through the GOP-led Ohio Senate on Tuesday.

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