What Ohio’s operating budget means for your small business.
The Ohio House of Representatives recently passed House Bill 64, Ohio’s operating budget, with a revised tax plan. NFIB/Ohio is very supportive of the adjustments made to tax policy. While we recognize Governor Kasich’s focus on small-businesses we believe the Ohio House changes continue this focus while avoiding some of the additional complexities and compliance included in the original version.
Continuing the work of Governor Kasich in his efforts to reduce income taxes, under the Ohio House plan, all Ohioans will enjoy a 6.3 percent state income tax reduction. This reduction will bring Ohio’s top marginal rate below 5 percent. When Governor Kasich came into office the top rate exceeded 5.9 percent! Additionally, the small business investor deduction was made permanent. This deduction allows partners in pass-through entities, S-corps, LLCs and sole proprietors to deduct up to 75 percent of their first $250,000 in business income. This deduction has been very well received by NFIB/Ohio members allowing you to keep more money to reinvest in your businesses.
The operating budget now moves to the Ohio Senate where that body will make their revisions before passing the bill where it will inevitably go to a conference committee to work through the Ohio House and Ohio Senate differences. The process should wrap-up by June 30, the end of the state fiscal year, concluding with a balanced budget in place.
While the focus in Columbus has been predominantly on state budget, other key policy areas continue to generate buzz including unemployment compensation and workers’ compensation. The Ohio Senate is working on the Bureau of Workers’ Compensation budget passed by the Ohio House. NFIB/Ohio was successful in amending the bill in the Ohio House to preserve due process for certain appellate hearings. Watch the NFIB/Ohio webpage for updates on these areas.
Roger Geiger
Vice President,
NFIB/OH Executive Director
