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Government & Politics

Speaker Says Ohio House Budget Will Include Change to Small Business Tax Deduction

photo of Larry Householder
Speaker Larry Householder in January 2019.

The House version of the budget comes out Thursday, and it’ll include a change to a controversial deduction that allows some small businesses to take up to a quarter of a million dollars in income tax-free. 

Speaker Larry Householder said he wants to take that small business tax deduction from the first $250,000 in income down to $100,000 – which he said still provides incentives for small businesses to reinvest.

“We think that when you get above that number, it starts to stray a little bit and we’re probably taking care of some folks that are putting it in the bank or putting it in their pocket," he said.

Democrats have been calling for a change in this deduction for years, saying that it’s been allowing many one-person businesses and partnerships to take billions in tax credits without creating any jobs.