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Senator Faber’s Weekly Newsletter...
Special Budget
Edition, Part 2
Yesterday I voted to approve the conference committee report of the new
biennial budget. This budget is a triumph for smarter, leaner
government. I am proud to say that my caucus rejected the calls
for increased taxes and made the necessary cuts to improve the business
climate of the state while protecting essential funding for education
and health and human services.
One of the hallmarks of this budget is an innovative program to
encourage investment and job growth. During the budget process I
worked with the Kasich Administration and private sector tax experts to
develop InvestOhio, a new program that allows people making an
investment in an Ohio small business to receive a tax credit of 10
percent if they keep the investment for at least two years.
Nearly half of all Ohioans are employed by small businesses, so
anything that helps these companies grow provides a major boost to
Ohio’s economy and job creation efforts. InvestOhio will help generate
immediate capital investment in these businesses and should act as a
jump-start for Ohio small business. Currently, Ohio residents pay
a 21 percent tax on their investment earnings, but they pay only 15
percent if they become Florida residents.
The budget finally eliminates Ohio’s estate tax, better known as the
“Death Tax,” by 2013, which will save families, farmers and small
business owners in Ohio more than $300 million annually. The budget
provides critical relief in these tough economic times by keeping the
final installment of a 21 percent, across the board income tax cut
approved in 2005 for every taxpayer. This reduction is estimated to put
more than $800 million back in the wallets of Ohio families.
Lastly, a provision that I was proud to work on with Representative Jim
Buchy was included in the final version of the budget. The use
tax amnesty program will allow small businesses with a use tax
liability to participate in an amnesty period which will include a
limited look-back period and a forgiveness of penalties and
interest. This program was necessary to help small businesses
address the often misunderstood use tax.
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