Ohio Gov. Bob Taft's budget proposal to end income tax reciprocity with neighboring states would hit this border region hardest of all. The modest budget relief it could give Ohio wouldn't be worth the costs imposed on cross-border commuters and employers. It smacks of more deficit desperation and could further set back efforts to make the Tristate more competitive as a region.

Under agreements Ohio and Kentucky signed in 1972, workers now pay state income taxes in the state where they live rather than where they work. If Ohio "divorced" Kentucky on tax reciprocity, almost 29,000 Southwest Ohio residents who work in Kentucky or Indiana could see their state income taxes as much as double. Almost 62,000 Kentucky and Indiana residents who work in Ohio would have to file returns in two states and could face added tax filing costs. Employers could face added cost and complexity on withholding.

Ohio Budget Director Thomas W. Johnson insists any pain for employers would be short-lived. "We believe this is fair," he said.

Employers scouting the Tristate for an office site may disagree about the added hassles.

The proposal affects about 9 percent of Greater Cincinnati workers. Ohio-wide, it affects only about 2 percent. The Tristate region would be the biggest loser by far. That hardly jibes with Taft's push to distribute tax burdens more evenly statewide.

It should be acknowledged that only about 15 states and the District of Columbia have inked reciprocal tax agreements. And more out-of-state residents cross into Ohio to work than Ohio residents commute to work in adjacent states. Southwest Ohio's net gain of cross-border commuters is about 32,000. Ohio's statewide net gain was about the same in 1990, but Census 2000 reports a drop to 26,700 statewide. If Ohio dumps reciprocity, the net gain of commuters paying Ohio income tax would add only about $15 million a year to the general fund. Even if we go by Ohio budgeteers' calculations using outdated 1990 Census numbers, it would still add less than $18 million - just a fraction of the $2 billion-a-year Ohio deficit. Lawmakers should find other revenue sources to patch the huge breach in Ohio's budget.