Small Business Tax Deduction Should Remain, DeWine Tells Business Group
Gov. Mike DeWine said he wants lawmakers to erase a change made to a small business tax deduction that allows many sole proprietorships, partnerships and other small operations to take the first quarter million dollars of their income tax free. DeWine spoke about it before the National Federation of Independent Business Ohio.
The budget approved overwhelmingly by the House allows the first $100,000 in income tax-free. But DeWine said small business owners have told him that there were a lot of tax changes under his predecessor John Kasich, so they want the next two-year budget to focus on stability.
“You can look to our budget that we presented is where we think we should be and that is really no tax changes,” DeWine said.
Supporters of the change have said 86 percent of small businesses who took the deduction at $250,000 will still be able to take it at $100,000. Senators are looking at the budget now, and Finance Chair Matt Dolan (R-Chagrin Falls) has said the change is a tax increase.