Ohio House Proposes Decreasing Business Tax Deduction

​By: Brian Dicken, Toledo Regional Chamber of Commerce

​The Ohio House of Representatives passed their version of a state budget last week.  Changes are expected to be made to the bill in the Ohio Senate before the legislature presents a final budget bill to the Governor by June 30.

​In the House version, Ohio's small business tax deduction was decreased substantially in order to provide another round of personal income tax cuts.  This was done by reducing the current small business tax deduction from $250,000 to $100,000 and eliminating the 3% flat tax rate that pass-through businesses pay on earnings over $250,000. Since most small businesses are set-up as pass through entities, business owners pay taxes on business income at the income tax rate of their individual owners.
 
The Toledo Regional Chamber of Commerce’s 2019-2020 policy agenda calls for policies that focus on increasing the tax base as opposed to those that shift the burden from one group of taxpayers to another.
 
The Ohio Senate continues to hold hearings on the budget proposal. If you are interested in sharing your story about how the current deductions have allowed you to re-invest in your business, please contact Brian Dicken, vice president for advocacy & public policy, at 419-243-8191 or at brian.dicken@toledochamber.com. 

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​​​​Brian Dicken

​As the Vice President of Advocacy and Public Policy for the Toledo Regional Chamber of Commerce, Brian oversees the Chamber’s advocacy and public policy efforts with local, state and Federal governments. With nearly 20 years of experience, he has held positions in state government in the offices of the Ohio Lt. Governor, Ohio Auditor of State and Ohio Treasurer of State. He also worked for the late U.S. Representative Paul Gillmor and in the Office of the Vice President of the United States.