COLUMBUS — Gov. John Kasich’s proposal to boost taxes on tobacco, beer, and wine to help underwrite another income tax cut has lawmakers in border counties concerned that consumers will react by crossing state lines.

“It seems pretty indisputable that the price sensitivity along the border counties for alcohol, cigarettes, etc. is pretty high and it’s going to have a pretty drastic effect on these [border county] businesses,” said Rep. Robert McColley (R., Napoleon), whose district borders Michigan and Indiana.

Mr. Kasich wants to lower personal income taxes paid by individuals and small businesses by a cumulative 17 percent over the next two years.

As part of the package to help pay for it, he proposes raising the sales tax rate by a nickel on the dollar, expand the sales tax base to a handful of services, raise cigarette taxes by 65 cents per pack, bring other tobacco products in line with the higher cigarette level, and implement what his administration characterizes as an inflationary increase in beer and wine taxes.

The administration’s proposal would raise the tax on beer by 70 percent.

“That would put us 80 percent higher than Michigan, 213 percent higher than Indiana, 350 percent higher than Kentucky, 100 percent higher than West Virginia, and 350 percent higher than Pennsylvania,” Mr. McColley said.

A similar hike on wine, he said, “would put us right on par with Michigan but 11.75 percent higher than Indiana, 2 percent higher than Kentucky, but 49 percent lower than West Virginia.”

He made similar comparisons with cigarettes and sales taxes.

“With the data that I’ve seen ... these small businesses in border counties will bear the brunt of these changes, especially these drastic, drastic changes that will put them at a competitive disadvantage,” Mr. McColley said. “Why would we do this?”

Ohio Tax Commissioner Joe Testa noted that the state has increased border investigations since the last time the state raised the cigarette taxes two years ago to reduce interstate smuggling. He said that by the time higher taxes are poured into a 12-ounce mug of beer and a 5-ounce glass of wine, they will amount to a penny more for consumers.

“Beer and wine has not been adjusted since 1992,” he said. “Our proposal is an inflationary adjustment. ... Our overall goal is reducing our reliance on income [taxes], focusing more on consumption, driving the personal income tax rates down.”

The overall tax reform package carries a net tax cut of $39 million over two years. The governor has argued that income taxes are a drag on the economy and has repeatedly proposed shifting more toward consumer taxes with varying degrees of success.

Democrats, meanwhile, have argued that one income tax cut after another over more than a decade has not translated into the robust job growth that was promised.

“[We’re shifting] tax dollars that wealthy individuals are paying, and now we’re adding sales tax, beer taxes, and cigarette taxes on my friends who drive pickups in eastern Ohio to pay for that,” Rep. Jack Cera (D., Bellaire). “How is that driving us to improve manufacturing jobs, which drive our economy in Ohio and have driven our economy for a long time?”

Mr. Testa noted that 350,000 more low-income Ohioans, for a total of 1.6 million, would pay no Ohio income tax under the plan, thanks to changes made in income tax exemptions and low-income tax credit.

Contact Jim Provance at: jprovance@theblade.com or 614-221-0496.

First Published February 10, 2017, 5:00 a.m.