Gov. Mike DeWine’s proposed tax increases on cigarettes, gambling operators and marijuana appear likely to be cut from the budget by members of his own party in the House.
DeWine’s budget includes a $1.50 increase in cigarette taxes to fund a $1,000 child tax credit, doubling the marijuana tax to 20% and doubling the sports gambling operators tax to 40% for a sports projects fund.
House Finance Committee chair Brian Stewart (R-Ashville) cast doubt on the longevity of the proposed taxes early on.
“Day 1, I don't think anything's dead on arrival. But I do think that, you know, any time you're talking about tax increases in a Republican Party that's going to get, a skeptical eyebrow raise.”
Stewart said on Thursday that he and most of his caucus don’t support the tax increases, but nothing will change until after Friday’s budget amendment deadline.
"I don’t support these tax increases, and in my discussions with members, it’s clear that the majority of Republicans do not support them either," Stewart wrote in a text. "But we will not determine anything concrete relating to the substitute bill until we receive and deliberate on members’ amendments."
He continued: "I think it’s very unlikely we include tax increases in this budget, but that’s my own view, and we will determine as a caucus what gets done in the weeks ahead."
Other Republican leaders have showed a lack of enthusiasm for these tax increases.
"We have to be aware that every tax credit we we introduce or every tax deduction that we introduce makes it harder for us to get to our ultimate goal—that being, eliminating the income tax or having a flat income tax in the state of Ohio," said Senate President Rob McColley (R-Napoleon), less than an hour after DeWine's State of the State speech on Wednesday. "It comes down to how much it's going to cost and how it balances with the priorities of each of our chambers."
The House also seems poised to add a request by the Browns for $600 million in state-backed bonds for its domed stadium in Brook Park, outside of downtown Cleveland. The Haslam Sports Group brought its proposal to a House committee earlier this week, asking for the bonds and offering an up-front payment of $38 million.
"I think the caucus needs to look at it, decide what they want to do. But I've heard mostly positive things from our Republican caucus about it," House Speaker Matt Huffman (R-Lima) said Wednesday. "I think these are the kinds of economic deals that we've done with other, as we call megaprojects investors."
Some lawmakers raised concerns that the $3.4 billion stadium project and the surrounding development would just shift economic development from downtown Cleveland rather than create growth. The team's ownership group disputed that, saying that "cannibalization" won't happen because the domed stadium is unique and will bring in new events and activity.
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