The Akron Beacon Journal “Their View” attacking a “tax loophole for the wealthy” requires correction.
The “Small Business Deduction” is not a loophole, nor does it target the wealthy. It was passed in response to the repeal of the corporate income tax on large corporations. With over 60 percent of new jobs provided by small businesses, the legislature realized the unfairness of having small employers pay a tax that exempted big ones. In order to level the competitive field, they enacted the SBD so small companies were not paying a tax their larger competitors did not have to pay. It was a fair correction to a very effective jobs growth program. Any fair assessment of Ohio’s economy subsequent to it will confirm the policy works.
Secondly, child care and dependent credit are federal credits, not state. Ohio’s SBD has nothing to do with eligibility for those credits.
Thirdly, the Ohio joint filing credit gets higher as income rises, not lower. And it is dependent on filing status. It is not a “means tested” benefit, as the article claims.
Finally, the property tax homestead exemption is now based on Ohio income. What was left out is that before 2013 there was no income test at all, and there is also an age requirement.
The Akron Beacon Journal should be accountable for the facts in their paper. Anyone quoting leftist Policy Matters should be as skeptical as when quoting rightist Heritage Foundation. Newspapers can’t hide behind sources from the left or the right that they know are biased. We as readers should also be skeptical as well when anyone demagogues vaguely defined groups such as “the wealthy” or “business owners.”
Sielschott, a certified public accountant, is the NFIB Area Action Council Chairman.