Ohio lawmakers in both chambers have their spending plans. The House plan passed last month and the Senate advanced their budget Thursday.
Tax Cuts
Both proposed budgets provide tax relief to hardworking Ohioans. The House proposal eliminates state income tax for those making below $22,250. For everyone else, there is a flat 6.6 percent reduction in individual income rates.
The Senate’s plan calls for eliminating state tax for income under $21,750, and cutting tax rates by 4 percent in 2020 and another 4 percent in 2021.
The House plan also reduces the small business tax deduction so that it applies only to the first $100,000 of income, rather than $250,000 that had originally been in place. However, the Senate plan restores the deduction to the full $250,000.
The House also included some other harmful tax changes that would increase burdens on ridesharing and booking hotel rooms online.
Film Tax Credit
Ohio currently has a film tax-credit program, worth $40 million annually, intended to incentivize filmmakers to move production to the Buckeye state. The House budget calls for the elimination of this program, while the Senate not only restores the program, but even expands it to cover certain theatrical productions.
Spending
The Senate plan appropriates $550 million for “wraparound” wellness services, which include mental-health and after-school programs, intended to help at-risk children. This funding is $125 million less than the $675 million designated by the House for the same programs.
The House also proposed spending $85 million on “H2Ohio”, a top priority for Gov. DeWine to increase water quality. The Senate more than doubles this amount, appropriating $172 million for the program.
With two weeks remaining to pass a final budget, lawmakers will be debating the two proposals in search of common ground. One thing all lawmakers should agree to is providing as much tax relief possible to hardworking Ohioans.