Lawmakers Find High-Wage Taxpayers Receive Majority of Tax Break Savings
Some state lawmakers have been questioning how much revenue is lost as a result of a recent tax break for small businesses. One Democratic representative says an analysis of that tax cut shows it's only helping a select few Ohioans.
Representative David Leland says he asked the Legislative Service Commission to determine who is taking advantage of Ohio’s personal income tax exemption for small businesses. Leland says he was shocked to find the tax savings were primarily going to the top one half of one percent of high wage taxpayers.
“This portion of this income deduction, this business income deduction that only applies to one half of one percent of all Ohio taxpayers but costs the state almost a billion dollars needs to be looked at," Leland says.
Leland says he plans to introduce legislation soon that will revise that tax break to make sure the savings only apply to middle class Ohioans. Majority Republicans and Gov. John Kasich have said they are not interested in changing this tax break at this point.