Governor pushes tax cut plan in Maumee - Toledo (OH) News, Weather and Sports

Governor pushes tax cut plan in Maumee

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Ohio governor John Kasich (R) was in Maumee, Wednesday, talking about what he considers the benefits of his tax cut plan.  Some local business owners appeared with the governor and on board with his idea.

The governor's plan aims at helping small businesses grow and creates jobs.
Mike McAlear owns a manufacturing and distribution company in Maumee.  It's a $40-million business that employs 150-people.  But he could use some help growing the business.

McAlear told 13abc reporter Bill Hormann, "I could always use help.  Anyone in business could always use help absolutely."

"If we can grow this state everybody is going to be better off."

Wednesday,  governor Kasich promoted his tax cut plan which he believes will grow Ohio.

Its main components are a 20-percent income tax cut,  the 50-percent small business tax cut, and the change to the sales tax in Ohio.

Brian Reis, the president of a potato chip company says that extra money he'll get back from a tax cut will help Ballreich Brothers compete against snack food giants like Frito-Lay.  "Every dollar that we have we're going to put back into the business," Reis said.  "We want to be a much bigger regional company."

Business owners say if they get to keep more of their profits, they will invest in technology... equipment and manpower... which is exactly what the governor believes they must do to survive. "When they're regulated less, when their costs are less when they can pay lower taxes they're always successful," the governor told 13abc.

But the governor's plan to broaden the sales tax to services like hair salons, tax preparers and laundro-mats may not be popular.

And State Representative, Matt Szollosi (49th District) predicts the tax cuts won't be easy to pass.  Szollosi says, "The governor's priority is a state income tax cut and a sales tax increase. I don't think we're on the same page, there."

But Mike McAlear believes that Ohio is finally trying to beat the competition from neighboring states.  "They're adapting to a changing environment and that's what I like," the business owner said.

The Ohio house will debate the governor's entire budget-- including these tax cuts-- until April.

The senate will look it over and make some changes... but the whole budget must be passed by July first.

It will be interesting to see how much of the governor's tax cut plan will survive.

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