Business Groups Blast Change In House Budget As Tax Increase
Business groups are blasting the House version of the budget for a change it makes to a controversial tax deduction – the one that allows many small businesses to take the first quarter million dollars of their income tax free.
The change would drop that income threshold to $100,000.
Tony Long at the Ohio Chamber of Commerce said the deduction was meant to equalize tax payments by different kinds of small businesses, but he thinks it’s also created jobs.
“I think there has been economic activity around that. It’s just hard to quantify," Long said.
Chris Ferruso with the National Federation of Independent Business Ohio said the change is clearly a tax increase on small businesses.
“If there are folks out there who are gaming the system, let’s have an honest discussion about that. But let’s not throw the baby out with the bathwater," Ferruso said.
House Speaker Larry Householder said he thinks the current deduction is allowing some business owners to put that money – in his words – in the bank or in their pocket.