Business Group Speaks Out Against Tax Break Reduction
The Columbus Chamber is speaking out against a change proposed in the state budget bill that would reduce a tax break for small businesses.
The House budget would, among many other changes, would 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 says 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?” DePerro says.
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 says that problem is a small occurrence compared to many other small business owners who would be hurt by the change.
House Speaker Larry Householder (R-Glenford) believed lowering the rate to the first $100,000 earned would find a balance so small business owners would still 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," Householder says.