Around the Miami Valley
Springfield Chamber reacts to Kasich's proposed budget
Governor John Kasich released his $63 billion budget plan on Monday. The plan, which the governor is calling Jobs Budget 2.0 is set to have a profound effect on Springfield's economy.
Governor Kasich has proposed $1.4 billion in tax cuts over the next three years and $3 billion in sales tax revenues over the next two years.
Kasich wants to reduce the tax rate on most small businesses by 50 percent and cut the income tax rate by 20 percent over three years.The sales tax rate will also drop from 5.5 to 5 percent.
Greater Springfield Chamber of Commerce President Mike McDorman, says the budget, if passed, will help Clark County's economy.
"As far as businesses are concerned I think it helps our small businesses that are already here from the stand point that lower taxes helps them as they look outward and as you look at the economy and the other things that they are dealing with from a business perspective this helps them understand that this is a more business friendly climate in the state of Ohio," McDorman said.
McDorman believes Kasich's budget plan is balanced and will help local economies that lost money in the previous state budget.
"The first thing that sticks out at you is the government getting back some of the revenue that they lost in the last biennium," he said.
Kasich's plan would increase taxes on legal services, accountants, oil and gas drillers. Movie, museum tickets and veterinarian services would also get hit with tax hikes. Essentially, everything outside of household, health care, and educational expenses would be subject to an increased sales tax.
McDorman says the chamber is still unsure what economic impact tax increases will have on those businesses.