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Sales Tax Expansion Plan Unlikely
Saturday, March 23, 2013    
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A State Representative said the Governor's plan has met with "stiff opposition" from his own party.

Don't look for Governor John Kasich's expanded sales tax plan to become law; State Representative Gary Scherer said the plan has met with "stiff opposition" among the governor's own party at the statehouse.

"Some modifications, he was proposing a 20% across-the-board reduction in the personal income taxes and an exemption of 50% of income from past-through entities, which is what most small businesses are, on up to $750,000 worth of that income," said Scherer.

Scherer was asked how the legislature might make up the difference if the sales tax expansion does not work: "Looking at some, perhaps, tweaking of other taxes like the Commercials Activity Tax to be able to come out with some income tax break, (but it) may not be as much as what the Governor was hoping for."

The expanded sales tax proposal would have applied to service-related purchases such as manicures, hair cuts, and other currently untaxed items.