DAYTON, Ohio (WDTN) – Tax relief is on its way to entrepreneurs.
The new state budget eliminates the income tax on the first $250,000 made by small businesses. This relief costs the state nearly $700 million, but legislators plan to bring in that money through a tax increase on cigarettes.
Dayton Area Chamber of Commerce tells 2 NEWS businesses are welcoming this relief.
“I would say the businesses absolutely need it,” said Chris Kershner,vice president of public policy and economic development for the chamber. “Business owners take the ultimate risk every day. They’re investing their hard-earned dollars, their personal dollars. They’re investing their organizational dollars in their companies. Is it deserved? Absolutely.”
The Chamber says the Dayton region has always welcomed new business. But every business can experience a tough hit to their bottom line.
It’s why chamber officials say savings like this go a long way.
“It allows them to get their feet wet to reinvest in their companies, reinvest in their workforce and grow right in the Dayton region. It’s really a win-win-win budget,” Kershner assured.
It a move that could also give some residents the push they need to start their own businesses. The Chamber encourages that. And they plan to keep this growth going even 2 years after this budget is up.
“Two years from now we’re going to be making sure that the administration and the legislature know the impacts of this budget and are looking forward to see what’s being done to support small business growth in Ohio and small business growth in the Dayton region,” the VP said.
This budget also puts in a place 3-percent flat tax on small-business income that make more than $250,000.
Those saving are said to give a big boost to Ohio business.