Columbus Chamber Asks Ohio House to Reconsider Small Business Tax Break Change in Budget
As a vote on the House version of the budget approaches soon, one of Ohio’s largest business groups is asking lawmakers to reconsider their changes to a tax break for small businesses.
The House budget would, among many other changes, reduce the income tax deduction threshold to $100,000. Now businesses can take their first $250,000 in income, tax free.
Don DePerro with the Columbus Chamber said this tax break, which went into effect in 2015, has played a role in economic growth and taking it away would be a mistake.
“They’re just taking advantage of being able to reinvest this money back into their employees back into their community, back into their business and now it’s being taken away?” he asked.
Supporters of lowering the reduction call the current policy an “LLC Loophole” that allows high-wage earners to shield their money by creating a pseudo-small business.
DePerro said that problem is a small occurrence compared to many other small business owners who would be hurt by the change.