Lobbyists, Lawyers, and Consultants rejoice – Ohioans left out of Senate proposal
The Ohio Senate believes that lawyers, lobbyists, and consultants making $250,000 a year should pay no state income tax. The Senate changes to income tax rates and the LLC loophole will have a net tax decrease of over $700 million over two years.
For $700 million we could build affordable housing, strengthen our schools, reduce college tuition, and reduce poverty – investments that are the foundation of a strong economy.
In the first draft of the Ohio Senate’s version of the budget, Sen. Dolan and Obhof rolled back the House’s proposed change to the LLC Loophole (That would have capped the loophole at $100,000 instead of $250,000 worth of income). This will likely be an issue heavily debated in the conference committee over the next 3 weeks.
The Senate version also doubles down on tax cuts for the wealthy with a 4% rate cut each tax year (for a total of 8% reduction in tax rates). This will cost Ohio’s budget hundreds of millions of dollars that are needed in our schools and communities. Individually, this tax cut will be so small that most families wont even notice it.
The Senate version also
Provides a slight increase to the LGF and PLF
Creates a tax on vaping products
Maintains the House approach to online sales tax ($121 million a year for the state).
Removes the fix for the hotel intermediary loophole that the House proposed.
Maintains the House proposal to end the netjets loophole, car racing
Eliminates the House proposal to end the tax loophole on rare coins and the filmmakers
Eliminates the House proposal to create a tax credit to hire ex-felons
Creates an educator tax deduction for professional development expenses.
Maintains the proposal from the House to repeal the political contribution tax credit
These tax changes will not strengthen Ohio’s economy or opportunities for hardworking Ohioans. Instead, Ohio should repeal the LLC Loophole (or at least follow the House version), strengthen the review process of tax expenditures, and instead of cutting income tax rates – AGAIN – invest those dollars into the foundation of a strong economy.