Benefits of proposed tax break are questionable, report says
Posted April 09, 2015 in Press Releases
Tax cut for businesses would drain needed revenue and not likely spur job growth.
For immediate release
Contact: Zach Schiller, 216.361.9801
A new business tax break proposed by Governor John Kasich would not likely lead to significant job creation and would expand opportunities for tax avoidance, Policy Matters Ohio says in a new report. Kasich has proposed eliminating the Ohio income tax for hundreds of thousands of business owners who pay the tax on their companies’ profits. The plan covers owners of businesses with $2 million or less in annual receipts. It would roughly double, to $700 million a year, the overall size of a tax deduction for business owners created less than two years ago. The previous deduction has yet to show results in job growth. Combined, the deductions would drain even more revenue needed for public services, while providing dubious benefits, the Policy Matters report says. The average gain will be under $1,000 a year, and most owners will get far less