Governor's budget plan more than erases deficit
Governor's surplus called 'painful, needless burden'
The governor today gave the General Assembly a proposed state budget with
a surplus of $0.545 billion.
The plan brought immediate objections from lawmakers and a host of interest groups, especially those representing taxpayers, who excoriated the governor for seeking to raise a surplus 'during the worst recession in two generations.'
Tomorrow's headlines if you were governor:
- Sales-tax hike seen as barrier to hiring
- Outrage greets governor's income-tax plan
- Smokers vow they won't cough up one penny more
- School leaders hail governor for sparing basic education
- Ohio's libraries greet budget plan with relief
- Mental-health advocates praise governor for deflecting budget ax
- Governor blasted as 'anti-marriage, anti-children'
- Tax would boost electricity rates for all, economists warn
- Business tax hike will 'strangle' growth, critics claim
Your choices
- Taxes
- State sales tax: Increase sales tax rate to 6% (raises $1.3 billion)
- State income tax: Increase taxes on top earners (making at least $202,000) by 10% (raises $320 million)
- Cigarette tax: Increase cigarette tax to $2.50 a pack (raises $700 million)
- 'Pop' tax: One cent per ounce (raises $800 million)
- Commercial activities tax: End exemption for first $1 million in sales (raises $250 million)
- Exemptions: End sales-tax exemption for equipment sold to electricity providers (raises $650 million)
- Exemptions: Cut income-tax deductions for spouse and children by half (raises $500 million)
- Spending
- No spending cuts were made.
- Sell or lease state assets
- Lease Ohio Turnpike to private operator (raises $4 billion, but tolls would rise and nearby roads would get more traffic)
- Allow oil and gas drilling on state land (raises $25 million)
- Your budget results
- You have a budget surplus of $0.545 billion.
Looking back maybe I should not increase taxes on top earners (making at least $202,000) by 10% (raises $320 million) and still balance the budget.