Democrats Say Small-Business Tax Cut Hasn't Done What it's Intended To Do
The Kasich administration has said a small business tax cut passed in 2013 to spark job creation is not the cause of the state’s budget shortfall, which is approaching a billion dollars. But Democrats are saying it’s not doing what it was intended to do.
The tax cut is targeted toward small businesses that report revenue as personal income, and the Ohio Department of Taxation says it cost the state around $1.1 billion last year. But critics such as Democratic Sen. Michael Skindell say it hasn’t created jobs – just a huge tax loophole.
“The accountants are advising their clients to reorganize themselves in a way so that they can avoid paying any state income taxes whatsoever.”
This fiscal year has brought the state’s two best months ever for new business filings with the Secretary of State’s office, which has cut those filing costs. And the office notes that filing that business paperwork doesn’t guarantee a company will begin operations, be profitable or create jobs.