- Governor Previews Upcoming Budget
- March 17, 2015 | Author: Todd A. Snitchler
- Law Firms: McDonald Hopkins LLC - Cleveland Office ; McDonald Hopkins LLC - Columbus Office
- This week Gov. Kasich provided a snapshot of what to expect in his upcoming biennial budget proposal that will be rolled out on Feb. 2. Continuing themes from previous budget proposals, the governor highlighted tax reform, job placement and retention, and support for low-income Ohioans among the policy areas that his proposal will address.
Gov. Kasich’s budget will propose eliminating income taxes for small businesses with annual gross receipts of $2 million or less, which includes sole proprietorships and pass-through entities, such as partnerships, Subchapter S corporations and limited liability companies. The governor said this will free up needed capital for Ohio’s small businesses to better leverage the expanding economic recovery, make new investments, and hire more employees.
The governor will also propose doubling the personal income tax exemption for low to middle income workers. Ohioans earning less than $40,000 per year would see the exemption increase from $2,200 to $4,000 in 2015 and those earning between $40,000 and $80,000 per year would see it increase from $1,950 to $2,850. In 2013 the exemption was $1,700 for all incomes.
The proposal will allocate $310 million in existing federal and state funding to create a framework for a comprehensive case management and employment initiative that can wrap unique collections of services around individuals based on their needs, with the goal of expanding the approach to all individuals on public assistance by July 1, 2016.
While the framework for the governor’s budget proposal will be released on Feb. 2, legislation containing the proposal will be introduced in mid-February. The McDonald Hopkins Government Affairs Group will release an Ohio Statehouse Update on the budget on Feb. 2.