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Ohio Republicans Unveil Proposed Tax Changes
COLUMBUS (Ken Hines) -- Republican state lawmakers hope to implement a sales tax increase to help fund a reduction of the tax rates of individual Ohioans and small businesses.
The Republicans' plan would cut the state's individual income tax rate by 10 percent over the next 3 years, while also reducing the rate on small businesses that make $250,000 or less by 50 percent.
To help pay for the cuts, the plan calls for an increase in the state's sales tax from 5.5 percent to 5.75 percent, as well as the elimination of a subsidy for homeowners.
Supporters of the plan believe it will boost the state's reputation among America's employers.
"This dramatic proposal speaks volumes across the country that Ohio is jobs friendly," Finance Committee Chairman Sen. Scott Oelslager (R-North Canton) said.
Senate Democratic Leader Eric H. Kearney (D-Cincinnati) criticized the plan, saying it will benefit the wealthy while hurting Ohio consumers, schools, and local governments.