The Ohio House of Representatives passed their version of a state budget last week. Changes will be made to the bill in the Ohio Senate before the legislature .
In the House version, Ohio's small business tax deduction was decreased substantially to make-up for another round of income tax cuts. To pay for it, the tax burden would shift.
GCP has urged and will continue to urge state leaders to consider the following based on feedback from our members:
- Preserve Ohio’s current small business tax deduction.GCP has consistently heard directly from our members that utilize these dollars to reinvest back into their companies and workforce. Reducing the maximum deduction for business income from $250,000 to $100,000 would seriously jeopardize future planning and investments.
- Maintain the 3% flat tax rate that pass-through businesses pay on earnings over $250,000. Most small businesses are set-up as pass through entities, meaning they pay taxes on business income at the income tax rate of their individual owners.Ensuring the proper treatment for a variety of business types, expenses, and investments made by business owners, to support the growth of their businesses, is a critical focus in deliberations on tax policy.Predictability and stability are crucial.
Shifting the burden from one group of taxpayers to another exacerbates already existing challenges for Ohio businesses.
Call your Ohio Senator today and explain the ramifications associated with these damaging tax proposals.