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Thousands Of Wealthier Ohioans Are Using A Tax Break Meant For Low Income Wage Earners
By: Jo Ingles | Statehouse News Bureau
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A new study shows tens of thousands of upper income Ohioans are taking advantage of tax breaks meant for poorer residents.
Wendy Patton with the progressive group Policy Matters says Ohioans who have LLC’s or pass through accounts for small businesses can earn up to $250,000 tax free. And that’s allowing them to qualify for tax breaks that were meant for low income citizens.
“What this is is a loophole within a loophole, an unintended consequence of a tax credit that hasn’t been properly examined,” Patton says.
Patton estimates the state could be losing about $5 million through this loophole. She is urging lawmakers to look into this and make changes.