Observers Continue To Pick Through The Governor's Budget

Gov. John Kasich speaks at a school in Cleveland in 2014. (Nick Castele / ideastream)
Gov. John Kasich speaks at a school in Cleveland in 2014. (Nick Castele / ideastream)
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The $5.7 billion dollars in tax cuts and benefits in the budget are paid for with $5.2 billion in tax increases on oil and gas drillers, on cigarettes, on businesses through the commercial activity tax, and through a half-percent increase in the state sales tax. Republican analyst Mike Gonidakis says shifting to consumption from income tax is the right thing.

"It gives people choice. As opposed to saying, we're mandating that you pay an income tax, we're going to say, 'it's a sales tax."

But Democratic analyst Keary McCarthy says big damage is done when lower-income people need higher-cost items.

"Because I have fewer resources, it's going to pinch a larger share of my disposable income."

McCarthy and Gonidakis agree on the proposed increases in the tobacco tax and the tax on oil and gas drillers, though they disagree on where the revenue should go.

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