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Ohio Lawmakers Attempt to Fix Unintended Tax Increase
By: Associated Press
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COLUMBUS, Ohio (AP) – Ohio lawmakers are working to fix to a budget provision that imposes an unintended tax increase on some small businesses.
At issue is a tax deduction contained in the two-year state budget that passed in June.
The budget allows small business owners to deduct up to 75 percent of their first $250,000 of business income this tax year, then 100 percent in 2016. A 3-percent flat tax is applied on the remaining net business income both years.
Lawmakers had wanted the flat tax applied on business income over $250,000. So for some, the rate for this tax year is higher than that paid prior to the budget.
A state Senate committee is scheduled to make changes to legislation clarifying their intent on Wednesday and possibly vote on the bill.