House Budget Would Change Small Business Tax Cut
The House version of the budget comes out Thursday. It will include a change to a controversial deduction that allows some small businesses to take up to a quarter of a million dollars in income tax-free.
Speaker Larry Householder (R-Glenf0rd) said he wants to take that small business tax deduction from the first $250,000 in income down to $100,000 – which he says still provides incentives for small businesses to 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 said.
Democrats have been calling for a change in this deduction for years, saying that it’s been allowing many one-person businesses and partnerships to take billions in tax credits without creating any jobs.
The House version of the budget may also take a swing at what Householder calls "special cutouts" – breaks that both conservative and liberal groups have called out as potentially costly.
“I think there’s the motion picture tax, an exception for fractional ownership of airplanes – those types of things," Householder said.
Lawmakers had been advised by their economic researchers to cut the spending in DeWine’s budget by 25 percent.
But Householder said this money will go to an income tax cut. And there are also suggestions there could be increased spending toward children and the opioid crisis.