small business income tax cut

Nine months after lawmakers created a committee to examine state tax breaks and loopholes to see which ones should be abolished or closed off, that committee finally has some members.

An income tax break for Ohio’s small businesses in recent years is under fire from Democrats and some Republicans. They say the current budget situation shows it’s time to end that tax cut.  Gov. John Kasich is firmly rejecting those suggestions.

As the state’s budget shortfall approaches a billion dollars, a tax cut adopted four years ago is getting close attention. The small business tax cut promoted by Republican leaders has saved business owners money – but has gained a lot of criticism in the process.

Senate Democrats are sounding off on the changes Republican leadership made in the House version of the state budget, which the GOP says will deal with a deficit that could be a billion dollars.

Senators will unveil their version of the state budget today – they needed to trim hundreds of millions of dollars to make sure it’s balanced. But critics are pointing to a small business tax cut as the reason the state’s tax revenues are short by nearly a billion dollars.

While members of the House say the state budget they passed is balanced, Senators are worried they’re going to have to cut as much as $400 million from it.  One research group is hoping lawmakers will look at closing some tax breaks before taking an ax to state programs.