Plain Dealer - Democrats Criticize Taft's Tax Plan At Hearing

(Cleveland Plain Dealer)Democrats criticize Taft's tax plan at hearing Tuesday, February 15, 2005 Sandy Theis Plain Dealer Bureau Chief Columbus- If the governor's tax-cut plan is adopted, a person earning $10,000 to $15,000 a year could use his income tax cut to see the Indians play - from the bleachers. But he won't have money left over for a beer and a dog. A person making more than $200,000 per year can use his tax cut to charter a jet to see the Tribe on the West Coast. And he'll still have ample cash left for the cab ride home from the airport. During the opening hearing Monday on Gov. Bob Taft's two-year budget plan, Democrats peppered the administration with questions about the proposed tax cuts and insisted the plan for an across-the-board personal income tax reduction favors the wealthy at the expense of the poor. Lt. Gov. Bruce Johnson disagreed. "When we're cutting personal income taxes, we ought to be cutting them from those who pay them," Johnson told the House Finance Committee. Because those who earn the most pay the most, their tax cuts would be larger, he said. The governor's $51 billion, two-year spending plan calls for a series of tax changes, including a 21 percent cut in personal income taxes phased in over five years. Unlike neighbors Michigan, Indiana and Pennsylvania, which impose a flat tax, Ohio's personal income tax has nine brackets that tax the wealthy at a higher rate than the poor. Income of more than $200,000 per year is taxed at a rate of 7.5 percent, while those who earn $10,000 to $15,000 pay a 2.97 percent rate. Rep. Dale Miller, a Cleveland Democrat, asked Tax Commissioner Bill Wilkins to put a dollar value on the proposed tax cuts. When the cuts are fully phased in, Wilkins said, those making $10,000 to $15,000 would see an annual savings of $19.22. Those making more than $200,000 would get a $6,849 tax cut, he said. Miller questioned the wisdom of the proposed cuts, saying the poor would see virtually no savings. Wilkins said that all taxpayers would benefit and that Ohio still would have one of the nation's most progressive income taxes. Taft's plan also is coming under increasing criticism from advocates for the poor, who argue that proposed cuts to vision, dental and other health care programs will hurt the state's already tattered safety net. As Finance Committee members entered the hearing room, the advocates handed them a "prescription for saving lives" that included restoring the proposed health care cuts and raising the state cigarette tax 75 cents. Money from the cigarette tax increase would be diverted to health care and smoking-prevention programs, under the prescription. Taft has called for a 45-cent-per pack increase and using the proceeds to help balance the state budget. To reach this Plain Dealer reporter: stheis@plaind.com, 1-800-228-8272