TAX NEWS - June 2010

Ohio Tax: Kasich tax proposal criticized

BARBERTON: Summit County Executive Russ Pry and Barberton Mayor Bob Genet spoke out Thursday against a tax plan to reduce and eventually eliminate state personal income tax being touted by Republican gubernatorial candidate John Kasich.

The two Democrats held a press conference at Lake Anna Hall in Barberton, calling Kasich's agenda "radical."

They said the plan would be devastating to local safety forces.

Pry accused Kasich of bringing his Wall Street tactics to government. Kasich spent eight years as the managing director for Lehman Brothers, the global financial firm that declared bankruptcy in September 2008.

The Summit County politicians said the plan to eliminate state income taxes would put a heavier burden on budgets in communities that are already struggling to survive.

Pry called the plan a "nice political sound bite" and questioned why Kasich had no answers about how the money will be replaced.

Genet said getting rid of the state income tax would mean Summit County would lose $14.9 million and the city of Barberton $1.4 million.

"The safety forces account for 60 percent of the general fund, which is approximately $11.5 million," Genet said. "In order to accommodate this loss of revenue, the city would have to raise property taxes or cut services dramatically."

A spokesman for the Kasich campaign, Rob Nichols, disputes the claim labeling the news conference "just politics."

He said Kasich is talking about "phasing out the state income tax over time," but not until the economy is stabilized.

"John wants to get started on it [the tax plan] but in conjunction with other things such as more business-friendly reforms and reducing the size of government . . . when government is smaller, then he can reduce taxes."