What Ohio's New Budget Means for Your Small Business

Date: July 15, 2015

Vice President and NFIB/Ohio State Executive Director Roger Geiger on six small business takeaways from Ohio’s new spending blueprint.

On June 30, the Ohio biennial state operating budget passed the Ohio legislature and was sent to Gov. John Kasich for approval. NFIB/Ohio was there from the beginning, serving as an advocate for the small-business owners of Ohio urging lawmakers to cut taxes and reign in state spending.  
Here six small business takeaways from Ohio’s new operating budget:

1. Continues the 75 percent deduction on the first $250,000 of business income for pass-through entities in 2015 and increases to 100 percent in 2016 and beyond, and a flat tax of 3 percent on business income above $250,000

2. Reduces Ohio’s income tax rate by 6.3 percent, saving taxpayers $1.26 billion over the next two years.

3. Establishes the Ohio 2020 Tax Policy Study Commission to make recommendations on various taxes such as severance and how to transition Ohio’s personal income tax to a flat tax in the next several years.

4. The long standing prohibition on mental-mental claims in the workers’ compensation system was upheld as the conference committee stripped language that would have allowed first responders with post-traumatic stress disorder (PTSD) without a physical injury to file for benefits.

5. Unfortunately, the conference committee kept the Ohio Senate language on project labor agreements (PLAs), resulting in a continuation of existing law whereby merit shops either forgo bidding on public works projects with PLA bidding specifications, or use labor from a local union hall. The bill does require a public hearing on all proposed PLA agreements.

6. The Ohio Senate added language changing Ohio’s subrogation mechanism, tilting the balance toward plaintiffs’ attorneys in recoveries, encouraging potentially costly litigation in lieu of settlement and leading to increased insurance premiums for small businesses.  Governor Kasich used his veto power to strike a portion of this provision from becoming law.  Regrettably, negative consequences of this law change remain a concern for small-business owners.

Related Content: Small Business News | Economy | Ohio

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