Householder: House, Senate Have Competing Budget Tax Philosophies
The Ohio Senate made many changes to the House budget plan, which includes restoring several tax exemptions such as the tax break for small business owners making up to $250,000 a year.
The House’s budget plan to reduce the small business tax break to the first $100,000 earned was one of the bigger moves made in the House budget.
The Senate bumped that tax break back up to the first $250,000.
House Speaker Larry Householder (R-Glenford) says he doesn’t buy into the concept that the tax break can encourage business owners to create jobs.
“But yet you’re paying zero taxes if you put it in your pocket. And they can write it off if they purchase equipment or have an employee so I think it just does the opposite of what the intention of it is,” says Householder.
Householder says the Senate’s changes represent a difference in philosophies on tax policy, for instance, the House cut the $40 million film tax credit but the Senate restored it.