Updated Budget Bill May Include Tax Hike and Tax Cut

Governor John Kasich is expected to update his budget bill with a tax hike and tax cut.(Photo: Office of Ohio Governor John R. Kasich)
Governor John Kasich is expected to update his budget bill with a tax hike and tax cut.(Photo: Office of Ohio Governor John R. Kasich)

Republican Gov. John Kasich’s budget update bill comes out today, and it could include a tax hike to pay for a tax cut.

This election year budget correction bill Kasich’s team calls the mid-biennium review is expected to include another income tax cut, mostly likely paid for at least in part by an increase in the state’s $1.25 per pack cigarette tax.

Shelly Kiser is with the American Lung Association, who says a good sized increase could bring hundreds of millions of dollars.

“The only time we would be against a cigarette tax is if it is too small. We say at least 50 cents to encourage people to quit,” says Kiser.

But Kasich may face an uphill battle, since the legislature is dominated by Republicans who have opposed tax increases in general. But he’s also likely to propose a new severance tax on oil and gas drillers, having said that the one House Republicans put together last year isn’t enough.

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