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Social Agencies Ask State To Raise Taxes
06-17-2009

Combining a one-cent increase in the state sales tax with a delay in planned income tax reductions would essentially close Ohio's $3.2 billion budget gap, according to rough estimates by the Ohio Department of Taxation.

A story from the AP says, this is one scenario Gov. Ted Strickland and Ohio lawmakers could use in trying to fix the hole in Ohio's budget, should they turn to ways to raise revenue.

But Strickland, a Democrat, and lawmakers from both parties have continuously rebuffed any talk of tax increases, focusing instead on making up the gap between the two-year spending plan and expected revenue with cuts alone.

Advocates for programs ranging from early childhood education to expanded children's health insurance continue to cry out for tax hikes to be part of the solution to Ohio's budget gap, which lawmakers are scrambling to close by July 1.

They said that social programs have already been cut drastically because of the state's economic situation, and any further cuts will devastate the social safety net.

Raising the state sales tax one percentage point from 5.5 percent to 6.5 percent would yield about $1.2 billion in additional revenue each year, according to rough estimates from the Ohio Department of Taxation. A half-percentage point increase would bring in $600 million each year.

Click here to read more of this story from the AP.

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Carey, Forest, Nevada, Sycamore, Upper Sandusky  -- Wyandot County, Ohio News & Information
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