Highlights of Ohio Gov. John Kasich’s two-year budget
Kasich says the inequitable structure of the sales tax, where most goods are taxed but only a few services are, does not reflect the modern economy where services are almost two thirds of all consumption spending, and it distorts consumption decisions between goods and services. The new tax plan is meant to balance the disparity. See a larger version of this chart
Reduces small business taxes by 50 percent, cuts state income tax by 20 percent over three years, and decreases sales tax from 5.5 percent to 5 percent.
TAX INCREASES
Places taxes on professional services such as lawyers and accountants, and increases tax on large-volume oil and gas drillers.
Puts higher priority on number of students who graduate from public colleges and universities by tying half of state funding to graduation rates, delivering combined $4.7 billion over the biennium.
PRIMARY AND SECONDARY EDUCATION
Gives extra $1.2 billion to public school districts, eases disparities in revenues from local property tax levies, and offers more money to districts based on number of poor, special-needs, gifted and college-bound students.
HIGHWAYS
Creates up to $3 billion for road and bridge projects mainly through bond sales backed by future Ohio Turnpike toll revenues.
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