Some Small Businesses Could See Tax Increases
Lawmakers and Gov. John Kasich lauded the state budget for its tax cuts for small business owners. But it may actually include a tax increase.
The budget changes the current sliding tax rate scale for small businesses to a flat tax. And there’s a difference in the amount of income that can be deducted by small businesses between the two budget years. All that translates to a tax increase for the first budget year for business owners making up to $250,000.
Republican Senate Leadership spokesperson John Fortney says the office that helped draft the language knows the intent was a tax cut, but admits there may be an anomaly.
“If there is one, then the legislative leaders, I’m sure, will be getting together and talk about what they need to do next,” Fortney said.
Fortney says the change came in the conference committee, which got the budget with just days to make changes and vote on it. The tax department said in a statement: ”Whenever there are changes to the tax code there are inevitably anomalous impacts.”