Ohio GOP Agreement Calls For Larger Income Tax Cut

Lawmakers continue to hammer out the state budget
Lawmakers continue to hammer out the state budget

Ohio Republican leaders have agreed to a larger statewide income tax cut as part of a package of changes to be included in the budget.

Senate President Keith Faber said Thursday that Ohioans would see a gradual income tax reduction over three years, beginning with an 8.5 percent cut in the first year. The proposal also gives small businesses a break and increases the state sales tax from 5.5 percent to 5.75 percent.

Lawmakers are working to finalize Ohio’s next two-year budget. They face a June 30 deadline to pass the almost $62 billion spending plan.

The House and Senate have separate tax proposals that must be reconciled. The Senate dropped a 7 percent statewide income tax reduction passed by the House in favor of small-business exemptions.

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