Kasich Proposes Withholding Less From Paychecks

Aug 7, 2018

The state’s budget office is forecasting a surplus at the end of this fiscal year. Gov. John Kasich says he wants to take that extra money and adjust withholdings, resulting in more money in Ohioans’ paychecks. 

The plan is a spinoff of a tax cut the Ohio Legislature passed three years ago. That 6.3% cut is reflected in the annual tax refund, but Kasich wants people to see that money sooner.

There’s an upfront cost to reducing the amount of money withheld from paychecks. Kasich wants to take the projected surplus and use it to adjust those withholdings.

“We’re not going to do this till November until I’m certain that we’re going to be in good shape on this but this isn’t going to put anybody in any hole. This isn’t going to be like some Kansas deal where we just cut taxes and don’t pay for it,” says Kasich.

The change could mean Ohioans will see a smaller amount in their tax refund.

The administration wouldn’t say if they needed approval from lawmakers to move forward with this plan.

The left-leaning think tank, Policy Matters Ohio, says the increase people will see in their paychecks will be "tiny." They add in a statement that the state "would be better served using [the surplus] to help meet some of the state’s many unmet needs."