Saturday, June 22, 2013
Provisions in the GOP Tax Reform Package:
An across-the-board reduction in personal income tax rates over the next three years (8.5 percent next year, 9 percent in 2015 and 10 percent in 2016). The House proposed a 7 percent cut.
A 50 percent tax cut on the first $250,000 in net business income. The Senate proposed a 50 percent cut on the first $375,000.
An increase of the state sales tax rate to 5.75 percent from 5.5 percent, with digital products and Internet purchases covered.
A reduction of the Commercial Activity Tax exclusion threshold to $500,000 from $1 million.
The elimination of tax deductions for gambling losses.
An increase in tax rates on “cigarillos,” little cigars that are taxed under a lower rate than cigarettes.
A return of homestead property tax exemptions to low-income seniors (those earning less than $30,000 annually) while retaining others added to an expansion approved under former Gov. Ted Strickland.
The end of the state covering 12.5 percent of property tax bills, via a rollback on future and replacement levies.
A state earned income tax credit.
Source: Senate officials