--- title: Proposed Ohio Business Income Deduction Changes Will Increase Taxes For Business Owners description: Angela Wurtenberger shares information about proposed ohio business income deduction changes will increase taxes for business owners... image: https://blog.brixeyandmeyer.com/hubfs/Tax%20Email%20Header-1.png --- [![Brixey Meyer](https://blog.brixeyandmeyer.com/hs-fs/hubfs/raw_assets/public/Brixey_and_Meyer_January2023/images/Brixey-white.png?width=3092&height=1080&name=Brixey-white.png "Brixey Meyer")](https://www.brixeyandmeyer.com/) - [Home](https://www.brixeyandmeyer.com/) - [Our Services](https://brixeyandmeyer.com/#headline-143-59) - [Audit & Assurance](https://www.brixeyandmeyer.com/audit-and-assurance) - [CFO Services](https://www.brixeyandmeyer.com/cfo-services) - [Cyber Risk Management](https://www.brixeyandmeyer.com/cyber-sure) - [Environmental, Social & Governance](https://www.brixeyandmeyer.com/environmental-social-governance-services-esg) - [Human Resources](https://www.brixeyandmeyer.com/human-resources) - [Operations, Technology & Strategy](https://www.brixeyandmeyer.com/operations-technology-strategy) - [Retirement Plan Administration](https://www.brixeyandmeyer.com/retirement-plan-administration) - [State & Local Tax](https://www.brixeyandmeyer.com/state-local-tax) - [Tax Compliance & Consulting](https://www.brixeyandmeyer.com/tax-compliance-and-consulting) - [Transaction Advisory](https://www.brixeyandmeyer.com/transaction-advisory-services) - [Valuation](https://www.brixeyandmeyer.com/valuation-services) - [Insights](https://blog.brixeyandmeyer.com/) - [About](https://brixeyandmeyer.com/?page_id=206) - [About B&M](https://www.brixeyandmeyer.com/about-bm) - [Our Team](https://www.brixeyandmeyer.com/our-team) - [Join Our Team](https://www.brixeyandmeyer.com/join-our-team) - [Contact](https://www.brixeyandmeyer.com/contact) - [Get Started](https://www.brixeyandmeyer.com/get-started) - [Client Portal](https://www.clientaxcess.com/#/login) - [Make a Payment](https://secure.cpacharge.com/pages/brixeyandmeyer/payments) - [Home](https://www.brixeyandmeyer.com/) - [Our Services](https://brixeyandmeyer.com/#headline-143-59) - [Audit & Assurance](https://www.brixeyandmeyer.com/audit-and-assurance) - [CFO Services](https://www.brixeyandmeyer.com/cfo-services) - [Cyber Risk Management](https://www.brixeyandmeyer.com/cyber-sure) - [Environmental, Social & Governance](https://www.brixeyandmeyer.com/environmental-social-governance-services-esg) - [Human Resources](https://www.brixeyandmeyer.com/human-resources) - [Operations, Technology & Strategy](https://www.brixeyandmeyer.com/operations-technology-strategy) - [Retirement Plan Administration](https://www.brixeyandmeyer.com/retirement-plan-administration) - [State & Local Tax](https://www.brixeyandmeyer.com/state-local-tax) - [Tax Compliance & Consulting](https://www.brixeyandmeyer.com/tax-compliance-and-consulting) - [Transaction Advisory](https://www.brixeyandmeyer.com/transaction-advisory-services) - [Valuation](https://www.brixeyandmeyer.com/valuation-services) - [Insights](https://blog.brixeyandmeyer.com/) - [About](https://brixeyandmeyer.com/?page_id=206) - [About B&M](https://www.brixeyandmeyer.com/about-bm) - [Our Team](https://www.brixeyandmeyer.com/our-team) - [Join Our Team](https://www.brixeyandmeyer.com/join-our-team) - [Contact](https://www.brixeyandmeyer.com/contact) - [Get Started](https://www.brixeyandmeyer.com/get-started) ![](https://blog.brixeyandmeyer.com/hubfs/Tax%20Email%20Header-1.png) # Proposed Ohio Business Income Deduction Changes Will Increase Taxes For Business Owners Published by [Angela Wurtenberger](https://blog.brixeyandmeyer.com/author/angela-wurtenberger) on May 23, 2019 12:04:31 PM ![Tax Email Header-1](https://blog.brixeyandmeyer.com/hs-fs/hubfs/Tax%20Email%20Header-1.png?width=750&name=Tax%20Email%20Header-1.png) The Ohio House is pursuing a significant change to Ohio’s Business Income Deduction currently benefiting owners of Ohio pass-through entities. The current Business Income Deduction provides great tax benefits for business owners; however, it is costing the state approximately $1 Billion in revenue.  Proposed House changes would: - Reduce the current $250,000 tax-free threshold for qualified income to $100,000 (This change would impact 14% of business owners) - Eliminate the current 3% flat rate for business income beyond $250,000 in qualified income - Make these changes retroactive to Jan. 1, 2019 (Impacts 100% of business owners now using the Business Income Deduction) The intent is to use at least some of the funds to pay for across-the-board income tax reductions, including eliminating the lowest two tax brackets so that those earning up to $22,250 will not owe state income tax and reducing the top rate to around 4.6%. The bill has been forwarded to the Ohio Senate and is awaiting revisions. Governor Mike DeWine has until June 30th to sign the two-year budget.   I If you would like to speak to one of our tax specialists for more information, please call: 1 (866) 760-0940 or send a note to [Miranda.Hawk@brixeyandmeyer.com](mailto:Miranda.Hawk@brixeyandmeyer.com) to setup a time to speak.   Tags: [brixey and meyer](https://blog.brixeyandmeyer.com/topic/brixey-and-meyer), [ohio](https://blog.brixeyandmeyer.com/topic/ohio), [Tax](https://blog.brixeyandmeyer.com/topic/tax), [Tax Team](https://blog.brixeyandmeyer.com/topic/tax-team), [Business Owners](https://blog.brixeyandmeyer.com/topic/business-owners), [Deductions](https://blog.brixeyandmeyer.com/topic/deductions) [Back to Blog](https://blog.brixeyandmeyer.com) - [Tweet](https://twitter.com/share) ## Related Articles ## [The Evolution of the Business Model](https://blog.brixeyandmeyer.com/the-evolution-of-the-business-model) In their book Business Model Generation, Alexander Osterwalder & Yves Pigneur define a business... 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