Ohio Senate Removes Income-Tax Cut From Budget, Keeps Biz Tax Cut

The state Senate is preparing to release its changes to Ohio's sweeping two-year budget.(Photo: WOSU file)
The state Senate is preparing to release its changes to Ohio's sweeping two-year budget.(Photo: WOSU file)

State senators in Ohio 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 Tuesday 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.

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