Kasich proposes new tax cut package

COLUMBUS, Ohio (AP) — As he heads into a fall re-election bid, Ohio Gov. John Kasich (KAY'-sik) is proposing a package of new tax cuts developed in cooperation with fellow Republicans in the state Legislature.

Details of the cuts were being woven into one of four midterm budget bills scheduled for committee votes Tuesday in the GOP-led Ohio Senate.

Kasich proposes accelerating a planned 10-percent income-tax reduction by six months, reducing withholding rates on the final 1 percent in July rather than December. He would also boost small business income-tax reductions to 75 percent from 50 percent for tax year 2014.

Changes also would double the personal income-tax exemption from 5 percent to 10 percent for low- and middle-income taxpayers.

Stronger state revenue than expected allowed for the cuts, valued at $402 million.

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