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Kasich Wants to Tax More Services, Lower Rates

Updated: Wednesday, February 6 2013, 10:36 PM EST
COLUMBUS -- Haircuts, trash pick-up, and cable TV are all services that would be newly-subject to state sales tax if legislators accept the new budget plan floated by Gov. John Kasich, (R )-Ohio.

The Ohio Department of Taxation released the final list of taxable services Wednesday evening. 

Kasich began pitching his new two-year budget plan on Monday.

The governor is asking lawmakers to drop the state sales tax to 5 percent from 5.5 percent.

“Whenever you increase the base of the pyramid [of taxable items] you can lower the rate overall,” explained Alan Rogers, an accounting expert with Franklin University.

Kasich said his plan -- which also includes an income tax cut of 20 percent and small business tax cut of 50 percent -- adds up to $1.4 billion break for taxpayers. 

While Ohioans may see fewer tax dollars coming out of their paychecks, Rogers predicts they will ultimately pay more in sales tax even if that rate goes down. 

“It will do a dip, and then come back in because you will use those services,” Rogers said. 

Approximately 80 services will be newly-taxed if the legislature adopts the governor’s plan.

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Reporter: Dana Jay
Web Producer: Ken HinesKasich Wants to Tax More Services, Lower Rates