The Ohio Senate has swapped out the high-end income tax cut in favor of the 50% tax deduction for small business investors. This plan lets $2.8 billion flee the state without being taxed.
Here’s how it works: for the first $750,000 in income for the owners of a Pass-Through Entity, half of that income can be deducted from the amount subject to state income tax.
Who are the owners of Pass-Through Entities? Small businesses, sole proprietorships, law firm partners, medical practices, and venture capitalists.
Venture capitalists are key, because they have ownership stakes in lots of PTEs. Whereas […]Full Story... →