Governor John Kasich held a press conference today to discuss contents of a series of bills referred to as the Mid-Biennium Review (MBR), named such because it will be considered half-way through Ohio’s two-year budget cycle. Although actual legislative language has not yet been introduced, his office released documents summarizing policies that will be addressed in multiple bills that are expected to be introduced by the end of the week. The bills will primarily focus on education and workforce development, energy, an income tax cut, bank tax reform, and capital improvements.
The following is an overview of the policies that Governor Kasich wants to implement:
Income Tax Cut
The MBR proposes a state income tax cut, which provides an individual income tax rate decrease. As oil and gas production taxes increase in Ohio over the next five years (see Severance Tax below), the proposal would deposit new revenue collected from oil and gas severance taxes into a special income tax reduction fund. The fund would be used to reduce Ohio income tax brackets for the following tax year. The estimate of the individual income tax rate decrease is $900 million to $1 billion over the next five years.