LLC LOOPHOLE BACK IN FULL – Big tax breaks for lawyers and lobbyists
The Ohio Legislature are lawyers and lobbyists to the LLC loophole. If you recall, during the budget debate in the spring of 2019, the Ohio House voted to limit the LLC loophole to the first $100,000 of income (currently at $250,000) to exempt from all state income tax. This change would have generated hundreds of millions of dollars that could have been used to help fund our schools,
The Senate rejected this proposal and a weak compromise was passed excluding lawyers and lobbyists from the LLC loophole. Immediately legal groups threatened to challenge this idea. Yesterday – in an unrelated tax bill – the Ohio House passed a reinstatement of the the loophole for lawyers and lobbyists.
The reality is the entire thing needs to go.
The entire LLC loophole allows out state investors, lawyers, lobbyists, and consultants (with no intention of job creation) to benefit to a tax credit that costs Ohio taxpayers more than a billion dollars a year!
Why are we investing $1 billion into lawyers and lobbyists when we could be investing that money into our students? We need more teachers, social workers and psychologists in our school – let’s create some of those jobs.