Ohio Budget Director Defends Kasich's Sales Tax Increase

Ohio's budget director is defending a proposed increase in the state sales tax, saying he believes reductions in the state income tax would allow consumers more choice in how they spend their money. Members of the House Finance Committee on Tuesday questioned the impact that the half-cent jump could have on their constituents' pocketbooks. Budget director Tim Keen said the governor's budget helps give money back to Ohioans by cutting the income-tax rate by 23 percent over the next two years. Republican Gov. John Kasich also has proposed boosting the state's sales tax from 5.75 percent to 6.25 percent and broadening it to include services such as cable TV subscriptions, parking and lobbying. Democratic Rep. Denise Driehaus of Cincinnati criticized the plan as tax shifting.