By Liz Sidoti
The Associated Press

COLUMBUS - Major tax changes proposed by Gov. Bob Taft probably won't be included in the Senate's proposed two-year state budget.

Senate President Doug White said Thursday that some changes to the tax code could surface but that he and other Republicans are philosophically opposed to an overhaul right now.

"Tax reform is a very good idea. I have no problem with having a more level playing field. But it's the wrong time in the economic curve to be instituting a lot of it," White said.

The Legislature is trying to write a spending plan for state agencies for the next two years in a time of declining state revenues and a sour economy. It must send the budget to the governor for his signature by June 30.

Taft had proposed permanently changing the state tax system to more fairly spread the obligation among businesses and individuals. The plan would raise $2.3 billion over two years.

It would lower the corporate franchise tax rate, while closing loopholes that help companies avoid paying; reduce personal income tax rates over four years; and expand the sales tax to more services.

The House rebuffed Taft, including in its version of the budget only a temporary 1-cent sales tax increase and a few other incremental changes.

Tim Keen, the state's assistant budget director, said changes to the tax system historically have been made within biennial budgets, and that "there's no time like the present" to modernize it.

"The governor's tax reform plan is consistent with the budget realities we face," Keen said.

He said that while Taft would prefer the Senate insert his entire tax proposal into the budget, the governor would settle for "more tax reform in the bill than what we currently see."

Republicans, who control the Senate, say they haven't ruled out a tax overhaul in the budget.

Sen. Bill Harris, who leads the Senate finance committee, agreed that parts of the tax system could be changed, such as streamlining the sales tax. He said significant changes in the tax code - such as changing rates for individuals and businesses - will have to wait.

"Tax reform needs to be a package, not just tweaking the tax code. Enough of that has already happened," said Harris, of Ashland.