The state of Ohio Operating Budget as introduced by Governor Kasich looks to further reduce income tax rates for our citizens, bringing the top rate down to 4.335% and collapsing brackets from 9 to 5.
This cut, however, is replaced with increases in taxes on sales of tobacco, vapor, wine, and beer, as well as taxing new industry sectors, and a .5% rate increase on Ohio sales tax across the board. NFIB/Ohio’s goal is to maintain the small business investor deduction from the past budget where pass-through entities in the state of Ohio (70% of NFIB members) pay no income tax on their first $250,000 of business income and only 3% above that.
Also included in the budget is a centralized system of municipal income tax collection that would save our members who do business in multiple cities across the state time and dollars as they would only file one return through the Ohio Business Gateway potentially saving small business owners hundreds of millions of dollars. NFIB/Ohio supports the reduction in the income tax and collapsing of tax brackets, maintaining the small business investor deduction, and also are very much for centralizing municipal income tax collection. We are not for expanding taxes on business owners in new sectors and shifting the tax burden. We will continue to monitor the progress of the budget, which must be passed by the Ohio General
NFIB/Ohio supports the reduction in the income tax and collapsing of tax brackets, maintaining the small business investor deduction, and also are very much for centralizing municipal income tax collection. We are not for expanding taxes on business owners in new sectors and shifting the tax burden. We will continue to monitor the progress of the budget, which must be passed by the Ohio General Assembly, balanced, by June 30, 2017. Please stay tuned to the NFIB/Ohio webpage www.nfib.com/oh for further updates.
Roger Geiger
Vice President
NFIB/OH Executive Director